Select Committee of the Lok Sabha Suggests 285 Changes in Income Tax Bill 2025

The Select Committee Report on the Income-Tax Bill 2025 was presented in the Lok Sabha on Monday, where it suggested 285 changes to simplify the Income Tax Bill 2025.  The Select Committee of the Lok Sabha, having 31 members, was appointed by Lok Sabha Speaker Om Birla to review the new Income Tax Bill, 2025. The committee was chaired by BJP leader Baijayant Panda.

The Income-Tax Bill 2025 was introduced in Lok Sabha on 13th February 2025. On the same day, Finance Minister Nirmala Sitharaman moved a motion to refer the Bill to a Select Committee. The committee were asked to examine the bill and submit their report.

After taking care of the fact that the Income Tax bill changes can have significant implications on the public, the Select Committee invited suggestions via electronic media, Sansad TV, social media, and the Digital Sansad website. They also sent emails to Chartered Accountant associations. Their efforts received active participation on the Income Tax Bill’s provisions and received over 330 suggestions from the public, experts, and institutions.

Additionally, the select committee scheduled 36 meetings with tax experts, stakeholders, the Ministry of Finance, and the Ministry of Law and Justice to invite their suggestions and opinions.

In May 2025, the Committee visited Bengaluru and Mumbai, where it had discussions with 28 experts, stakeholders, and organisations. On Monday, the Committee submitted its detailed report on the Income Tax Bill, 2025. Based on all the feedback and internal discussions, the Committee has suggested more than 285 changes to the original Bill.

These suggestions aim to make the Income Tax Bill more effective, fair, and easy to implement. One of the suggestions is to clarify definitions and eliminate ambiguities in the current Bill to avoid confusion. Additionally, the suggestion also includes updating the term capital asset to align with the amendments under the Finance Act 2025.