The committee has made 285 strategies and at its assembly on July 16 adopted the report on new I-T Invoice, 2025, which can now be tabled within the Home for additional motion.
The Parliament panel report on new Revenue Tax Invoice, 2025, which might substitute the six-decade outdated Revenue Tax Act, is scheduled to be tabled within the Lok Sabha on Monday.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 Revenue Tax Invoice, 2025, which Finance Minister Nirmala Sitharaman launched on February 13 within the Lok Sabha.
The Committee has made 285 strategies and at its assembly on July 16 adopted the report on new I-T Invoice, 2025, which can now be tabled within the Home for additional motion.
New invoice to obtain tax certainty by minimising scope of litigation
The simplified Revenue Tax Invoice, which is half the scale of the 1961 Revenue Tax Act, seeks to realize tax certainty by minimising the scope of litigation and contemporary interpretation.
The brand new invoice, launched within the Lok Sabha, has a phrase depend of two.6 lakh, decrease than 5.12 lakh within the I-T Act. The variety of sections is 536, as in opposition to 819 efficient sections within the current regulation.
The variety of chapters has additionally been halved to 23 from 47, in response to the FAQs (regularly requested questions) issued by the I-T division.
The Revenue Tax Invoice 2025 has 57 tables, in comparison with 18 within the current Act and eliminated 1,200 provisos and 900 explanations.
Provisions regarding 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. Because of this, the phrase depend has come down by 34,547.
In a taxpayer-friendly transfer, the Invoice replaces the time period ‘earlier yr’ as talked about within the Revenue Tax Act, 1961 with ‘tax yr’. Additionally, the idea of evaluation yr has been accomplished away with.
At the moment, for revenue earned within the earlier yr (say 2023-24), tax is paid in evaluation yr (say 2024-25). This earlier yr and evaluation yr (AY) idea has been eliminated and solely tax yr underneath the simplified invoice has been introduced in.
Whereas introducing the Invoice within the Lok Sabha, Sitharaman had mentioned that “substantial modifications” 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 take a seat from July 21 to August 21, 2025.
What Does New Revenue Tax Invoice Say?
- One of many key options of the brand new tax laws is the simplification of tax terminology and processes.
- The brand new invoice will eradicate the standard idea of an ‘evaluation yr’ and revenue will probably be taxed in the identical ‘tax yr’ it’s earned, changing the sooner system the place revenue from one yr (e.g., 2023–24) was assessed and taxed within the following yr (e.g., 2024–25).
- The brand new invoice additionally restructures provisions for exemptions and the Tax Deducted at Supply (TDS)/Tax Collected at Supply (TCS) by presenting them in tabular kind for simpler interpretation.
- The brand new invoice eliminated 1,200 provisos and 900 explanatory clauses from the present Act and consists of 57 tables—up from simply 18 within the current regulation.