Government set to introduce a fresh Income Tax bill in the Lower House on Monday
The Indian government has announced significant changes to the Income-Tax Bill, 2025, with the revised version set to be presented in the Lok Sabha by Union Finance Minister Nirmala Sitharaman on Monday. The key changes, based on the recommendations from the Select Committee chaired by Baijayant Panda, aim to simplify and rationalize the law without altering tax rates.
The revised Bill drastically reduces the number of sections and chapters, making the law easier to read, interpret, and implement. It retains the existing tax structure and rates, including the basic exemption of ₹12 lakh and progressive slab rates. The Bill also introduces taxpayer-friendly provisions, such as allowing late filers to claim refunds and providing unambiguous tax deductions for lump-sum pension payments.
In addition to the revised Income-Tax Bill, the Indian government plans to establish a green finance body to aid in achieving the net-zero carbon emissions goal. This new initiative will provide financial support for projects that promote renewable energy and reduce carbon emissions. However, the specific structure, funding, and timeline for the establishment of the green finance body have not been detailed.
The green finance body is expected to play a crucial role in India's strategy to combat climate change. The establishment of this body is not mentioned in the earlier bullet points about the Income-Tax Bill, 2025.
It is worth noting that the original Income-Tax Bill, 2025, introduced during the budget session, has been withdrawn to present a consolidated version of the bill with all amendments integrated. The withdrawal was done to avoid confusion.
The revised Income-Tax Bill, 2025, includes amendments such as uniform tax year adoption, relief in Tax Collection at Source (TCS) and Tax Deduction at Source (TDS), and clear tax exemption on commuted pension. These changes are considered a landmark reform to make the Indian Income Tax law more accessible and user-friendly.
The revised Income-Tax Bill, 2025, is expected to come into effect from April 1, 2026. The impact of the green finance body on India's overall carbon emissions remains to be seen.
[1] India Today [2] The Hindu [3] Business Standard [4] The Times of India [5] Livemint
- The new green finance body, a charitable initiative by the Indian government, aligns well with India Today's coverage of the nation's commitment to reducing carbon emissions.
- The Business Standard has reported on the revised Income-Tax Bill, 2025, which retains existing tax rates while simplifying the law, promising to make the Indian business environment more accessible and user-friendly.
