New Delhi, Feb 13 (ANI): Union Finance Minister Nirmala Sitharaman introduces Earnings Tax Invoice in Lok Sabha, in New Delhi.
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A report of the parliamentary committee set as much as scrutinise the brand new Earnings Tax Invoice, 2025, which might change the six-decade previous Earnings Tax Act, is scheduled to be tabled within the Lok Sabha on Monday.
The 31-member Choose Committee, chaired by BJP chief Baijayant Panda, was appointed by Lok Sabha Speaker Om Birla to scrutinise The brand new Earnings Tax Invoice, 2025, which was launched by Finance Minister Nirmala Sitharaman on February 13 within the Lok Sabha.
The Committee has made 285 options and at its assembly on July 16 adopted the report on new I-T Invoice, 2025, which is able to now be tabled within the Home for additional motion.
The simplified Earnings Tax Invoice, which is half the scale of the 1961 Earnings Tax Act, seeks to realize tax certainty by minimising the scope of litigation and recent interpretation.
The brand new invoice, launched within the Lok Sabha, has a phrase rely of two.6 lakh, decrease than 5.12 lakh within the I-T Act. The variety of sections is 536, as towards 819 efficient sections within the current legislation.
The variety of chapters has additionally been halved to 23 from 47, in keeping with the FAQs (regularly requested questions) issued by the I-T division.
The Earnings Tax Invoice 2025 has 57 tables, in comparison with 18 within the current Act and eliminated 1,200 provisos and 900 explanations.
Provisions referring to exemptions and TDS/TCS have been made crispier within the Invoice by placing them in a tabular format, whereas the chapter for not-for-profit organisations has been made complete with use of plain language. On account of this, the phrase rely has come down by 34,547.
In a taxpayer-friendly transfer, the Invoice replaces the time period ‘earlier 12 months’ as talked about within the Earnings Tax Act, 1961 with ‘tax 12 months’. Additionally, the idea of evaluation 12 months has been executed away with.
At present, for earnings earned within the earlier 12 months (say 2023-24), tax is paid in evaluation 12 months (say 2024-25). This earlier 12 months and evaluation 12 months (AY) idea has been eliminated and solely tax 12 months below the simplified invoice has been introduced in.
Whereas introducing the Invoice within the Lok Sabha, Sitharaman had stated that “substantial adjustments” have been made within the Invoice. The variety of phrases have been halved from 5.12 lakh, and sections diminished from 819 to 236. Following introduction, the Invoice was referred to the choose committee of the Lok Sabha and the committee was mandated to submit its report by the primary day of subsequent session.
The Monsoon session of Parliament is scheduled to sit down from July 21 to August 21, 2025.
Revealed on July 20, 2025
