New Delhi: The Finance Ministry may not introduce the new Income-Tax Bill in the Budget 2025 session of Parliament according to reports. Finance Minister Nirmala Sitharaman declared a review of the Income-Tax Act in July 2024, overseen by an internal committee headed by Chief Income-Tax Commissioner V.K. Gupta. This committee is slated to present its final report prior to the Budget announcement on February 1, 2025.
While the committee is expected to finish its review on schedule, the proposed Bill is unlikely to be passed during the Budget session. Following the submission of the report, the draft bill will be formulated with the Law Ministry’s help and then sent to the Standing Committee on Finance for additional review and input.
The committee, tasked with a six-month deadline ending in January 2025, is anticipated to focus on streamlining the Income-Tax Act rather than altering tax rates. Its objective is to make the Act more succinct, user-friendly, and accessible. A senior government official has confirmed the committee’s intention to submit 23 reports, corresponding to the Act’s chapters, prioritizing simplification. To date, eight reports have been delivered to the Central Board of Direct Taxes (CBDT), with sub-committees finalizing the rest.
The 1961 Income-Tax Act, with origins from 1922, comprises 298 sections across 23 chapters, along with many provisions. The forthcoming amendments are designed to consolidate these provisions, enhancing transparency and comprehensibility for taxpayers without modifying tax rates.
