Introduction
The Lok Sabha select committee has been constituted to examine the Income Tax Bill 2025, a move aimed at simplifying tax language and regulations. This panel, formed on February 14, 2025, is chaired by BJP MP Baijayant Jay Panda and comprises 31 members representing various political parties.
Composition of the Select Committee
The committee consists of 31 MPs, with 17 from the ruling National Democratic Alliance (NDA) and 13 from the opposition parties. Additionally, one MP represents Mizoram’s ruling Zoram People’s Movement (ZPM).
NDA Representation
- BJP: 14 MPs, including Nishikant Dubey, P.P. Chaudhary, Bhartruhari Mahtab, and Anil Baluni.
- TDP, JD(U), and Shiv Sena: 1 MP each.
Opposition Representation
- Congress: 6 MPs, including Deepender Singh Hooda.
- Samajwadi Party (SP): 2 MPs.
- DMK, Trinamool Congress (TMC), Shiv Sena (UBT), NCP (SP), and RSP: 1 MP each.
- ZPM: 1 MP (Richard Vanlalhmangaiha).
Mandate & Timeline
The committee is expected to submit its report by the first day of the Monsoon session. With the Budget Session concluding on April 4, 2025, the Monsoon session is anticipated to begin in the third week of July.
Key Changes in the Income Tax Bill 2025
The proposed bill introduces significant terminological changes to simplify tax understanding. Some of the notable revisions include:
- Using the more logical “tax year” in place of “assessment year” and “previous year”.
- Eliminating complex provisos and explanations to enhance clarity.
Legislative Process & Next Steps
During its introduction in Lok Sabha on February 13, 2025, Finance Minister Nirmala Sitharaman recommended referring the draft law to a select committee for thorough examination. This procedural step ensures a comprehensive review, allowing members from across the political spectrum to scrutinize the provisions before the final implementation.
Implications for Taxpayers
The Income Tax Bill 2025 is expected to make tax filing more straightforward by:
- Enhancing clarity in tax-related terminologies.
- Reducing legal ambiguities in income tax assessments.
- Ensuring greater transparency in compliance procedures.
Conclusion
With the Lok Sabha select committee now tasked with reviewing the Income Tax Bill 2025, the proposed amendments are set to bring greater ease of understanding and compliance for taxpayers. As the report submission deadline approaches, stakeholders and taxpayers alike await further insights on the finalized tax reforms.
