Lok Sabha Approves Updated Income Tax Bill

NEW DELHI: In a landmark decision, the Lok Sabha has approved the Income Tax Bill 2025, a pivotal reform designed to overhaul the decades-old income tax legislation for individuals and corporations. This move aims to simplify the tax filing process and significantly reduce the compliance burden on taxpayers.

Key Reforms and Recommendations

Finance Minister Nirmala Sitharaman introduced the revised bill, incorporating 285 recommendations from the Select Committee of Parliament. Notable changes include reducing the time period for filing TDS correction statements from six to two years and introducing flexibility for refund claims in cases of delayed filings.

Impact on Taxpayers and Economy

Tax experts hail the reforms as a major step towards easing compliance for individuals, companies, and MSMEs, fostering a stable and transparent tax system. The revisions address previous ambiguities, promoting fairness and reducing disputes.

Simplifying the Tax Law

The new bill eliminates redundant provisions, reorganizes sections for better navigation, and uses simplified language to make the law more accessible. It also removes the mandatory investment of 15% of regular income in specified modes, adding 'profession' to facilitate electronic payments for professionals.