World
India
Finance Minister Nirmala Sitharaman presented the much-anticipated Income Tax Bill 2025 in the Lok Sabha, aiming to simplify tax laws in India. The bill is designed to make tax payments and return filings easier by using more straightforward language. However, the introduction of the bill led to a commotion in Parliament, with several opposition MPs staging a walkout.
Opposition Protests as New Bill is Introduced
As soon as Sitharaman tabled the bill, several Opposition members began protesting. Amid the uproar, many MPs decided to walk out in opposition to the bill, although the exact number of those who left remains unclear.
One of the primary concerns raised by the Opposition was the number of sections in the new bill. MP NK Premachandran from Kerala’s Kollam pointed out that the new legislation has more sections than the previous Income Tax Act of 1961.
Government’s Response to Opposition’s Concerns
In response to Premachandran’s objection, Sitharaman explained how the law has evolved over the years and why the new bill actually simplifies tax regulations.
“He should understand where the law is today and where it is being reduced,” she stated. “The Income Tax Act was originally enacted in 1961 and came into effect in 1962. At that time, they had only 298 sections… But as time went by, many more sections were added. As it stands today, there are 819 sections.”
She further clarified that the new bill reduces the number of sections from 819 to 536, making the law more concise. “So he should look at what it is today,” she added.
Sitharaman also revealed that over 4,000 amendments have been made to the 1961 Income Tax Act over the decades, and the government is now addressing those modifications through the new bill.
TMC MP Criticizes the Changes
TMC MP Professor Sougata Ray also raised concerns, arguing that the changes in the new tax bill were merely “mechanical” rather than substantive.
In response, Sitharaman defended the bill, stating, “They’re not mechanical changes. Substantial changes are being made. Number of words have come down by half. Sections and chapters have come down. It is in plain simple English and plain simple Hindi.”
Bill to be Examined by Select House Committee
To ensure thorough review and discussion, Sitharaman proposed that the Income Tax Bill 2025 be sent to a newly-formed Select House Committee. She stated that the terms and conditions regarding the committee’s review process will be determined by Speaker Om Birla.
“The committee will submit its report on the first day of the next session,” she added, emphasizing the importance of an in-depth examination before finalizing the bill.
A Step Toward Simplified Taxation
The government has positioned the Income Tax Bill 2025 as a major reform to simplify India’s tax system, making it more accessible for taxpayers. While the Opposition has raised concerns over the structure of the bill, the ruling party insists that it is a necessary step towards modernizing tax laws and reducing bureaucratic complexities.
With the bill now under review by the Select House Committee, its final outcome will be closely watched by policymakers, businesses, and citizens alike.
ALSO READ: 19 Months After Arrest, Former Dean Of COVID-19 Jumbo Centre Gets Bail From Bombay HC
