Lok Sabha Select Committee Presents Report on New Income Tax Bill
Thank you for reading this post, don't forget to subscribe!New Delhi, India – The Select Committee of the Lok Sabha today, Monday, July 21, 2025, submitted its much-anticipated report on the Income Tax Bill, 2025, to the House. BJP leader Baijayant Panda, who chairs the 31-member panel, handed over the report to the Speaker.
The Finance Minister, Nirmala Sitharaman, introduced the Bill on February 13, 2025. This legislation aims to completely overhaul the existing six-decade-old Income Tax Act, 1961. The Bill was referred to the Select Committee on the very same day it was introduced, with a mandate to conduct a thorough, clause-by-clause examination and submit its findings by the start of the Monsoon Session.
The Committee’s report proposes significant amendments, focusing on tightening definitions, eliminating ambiguities, and ensuring the new law aligns with current legal frameworks. Among its key recommendations, the panel suggested:
- Updating the definition of ‘capital asset’ to reflect changes made under the Finance Act, 2025.
- Clarifying the definition of ‘infrastructure capital company’ to prevent cross-references to the now-repealed Income Tax Act, 1961.
These proposed changes aim to create a more robust and unambiguous income tax framework for India.
