By The Sampadak Express
In a significant development in the Indian Parliament, Finance Minister Nirmala Sitharaman tabled the much-anticipated Income Tax Bill 2025 in the Lok Sabha on February 13, 2025. The new bill is designed to simplify the terminology and structure of India’s tax laws, making it easier for taxpayers to navigate the complexities of filing returns and paying taxes.
However, the introduction of the bill was met with strong opposition. Amid a ruckus in the Parliament, several Members of Parliament (MPs) from the Opposition staged a walkout. Although the exact number of MPs who walked out is not yet clear, the protest highlights the growing tension between the government and opposition parties over the proposed changes.
Opposition Raises Concerns
The bill was introduced against the backdrop of protests from opposition members, who raised concerns about its implications. NK Premachandran, the opposition MP from Kollam, Kerala, voiced concerns about the increase in the number of sections in the proposed bill compared to the previous Income Tax Act of 1961. He questioned the rationale behind introducing a bill that appeared more complex than the previous legislation.
In response, Finance Minister Sitharaman clarified the reasoning behind the changes, pointing out that the Income Tax Act of 1961 originally contained only 298 sections, but over time, due to amendments and additions, this number had risen to 819 sections. The new bill, she assured, would reduce the sections to 536, making the law more streamlined and less cumbersome.
Sitharaman further elaborated that since the Income Tax Act’s inception, a total of 4,000 amendments had been made, which were now being addressed with the introduction of the new bill. She emphasized that the new bill was an attempt to simplify the law, not complicate it further.
TMC’s Objections on “Mechanical” Changes
The opposition was not entirely convinced. Professor Sougata Ray, a Member of Parliament from the Trinamool Congress (TMC), expressed dissatisfaction with the new tax bill’s proposed changes, calling them “mechanical” and insufficient. He suggested that the changes were merely procedural and lacked substantial reforms.
Sitharaman, however, countered this argument by stating that the changes were far from mechanical. She explained that the bill introduced substantial reforms, including reducing the length of sections and chapters, and presenting the law in plain, simple language—both in English and Hindi. This simplification, she argued, would make it easier for taxpayers to understand and comply with the tax regulations.
Bill to be Reviewed by Select House Committee
In an effort to address the concerns raised by various MPs, Sitharaman proposed that the new Income Tax Bill 2025 be sent to a newly-constituted Select House Committee for further review. The committee will be tasked with evaluating the bill and submitting its report on the first day of the next parliamentary session. Sitharaman stated that the specific terms and conditions related to the committee would be determined by the Speaker of the Lok Sabha, Om Birla.
The Minister emphasized that this move would allow for a thorough examination of the bill by experts and stakeholders, and provide an opportunity for further suggestions and revisions before the bill is passed into law.
A Step Towards Simplifying Tax Laws
While the debate continues, Sitharaman remains firm in her stance that the Income Tax Bill 2025 aims to simplify the overall tax framework in India, making it more accessible and user-friendly for both taxpayers and tax authorities. By reducing the number of sections and ensuring clarity in the language, the government hopes to streamline the tax process, reduce litigation, and enhance compliance.
As the bill undergoes scrutiny by the committee and opposition parties continue to voice their objections, all eyes are now on how the government will navigate the coming weeks to ensure the bill’s passage. Whether the new reforms will meet the expectations of the public and ease the complexities of India’s tax system remains to be seen.
