Income Tax Bill 2025: Simplifying Tax Laws for the Digital Era

The Select Committee of the Lok Sabha is reviewing the Income-Tax Bill 2025, led by BJP MP Baijayant Panda. This bill aims to update tax laws with simplified language and modern terminology, covering various taxpayers, including digital transactions and cryptocurrencies, and offering a more transparent tax framework.

A critical meeting of the Select Committee of the Lok Sabha, helmed by Bharatiya Janata Party MP Baijayant Panda, convened at the Parliament House Annexe to scrutinize the Income-Tax Bill 2025. This session follows the Lok Sabha Speaker's formation of a 31-member committee dedicated to examining the bill intended to streamline tax regulations, modernize definitions, and enhance clarity on tax matters.

Baijayant Panda, also a BJP National Vice President, chairs the committee. The bill, presented by Union Finance Minister Nirmala Sitharaman on February 13, aspires to supplant the Income Tax Act of 1961. It introduces changes impacting individuals, businesses, and non-profits, and advocates for simplified language, updated definitions, and a modern approach to terms like 'tax year' and 'virtual digital asset.'

Key changes include clearer definitions in Clauses 5 and 9, sustaining global income taxation principles for Indian residents while refining rules for non-residents. Additionally, Clauses 67 to 91 address digital assets with new tax provisions. The bill also offers enhanced compliance rules for non-profits, supporting startups and renewable energy investments. The government anticipates that the Income Tax Bill 2025 will streamline compliance and establish equitable taxation across all taxpayer categories.

(With inputs from agencies.)