Game-Changer for Middle Class? Nirmala Sitharaman Tables Revamped Income Tax Bill 2025 Amid Parliament Chaos
New Delhi(The Uttam Hindu): Finance Minister Nirmala Sitharaman on Monday introduced the revised version of the Income Tax Bill, 2025 in the Lok Sabha, even as opposition MPs created uproar in the House. The updated draft incorporates most of the 285 recommendations made by the Parliamentary Select Committee, chaired by BJP MP Baijayant Panda.
Presenting the bill, Sitharaman said that the revisions were aimed at improving legislative clarity, aligning phrasing, fixing cross-references, and making necessary drafting changes. The earlier bill was formally withdrawn to avoid confusion, she added.
The new draft seeks to replace the outdated Income Tax Act of 1961, which has undergone over 4,000 amendments and ballooned to more than 500,000 words, making it complex for ordinary taxpayers. According to Panda, the proposed law will cut this complexity by nearly 50%, offering a cleaner, easier-to-understand legal framework.
The bill is designed to simplify tax procedures, reduce litigation, and modernize India’s tax regime, particularly benefiting individual taxpayers and MSMEs. The government says the new structure will reduce middle-class tax rates, leaving more disposable income in citizens’ hands—boosting domestic consumption, savings, and investment.