A Parliamentary committee reviewing the Income Tax Bill-2025 has completed its report, offering 285 recommendations to improve the proposed law, which aims to modernize and simplify India’s tax system.

The Select Committee of the Lok Sabha, headed by BJP MP Baijayant Panda, has officially adopted the report. It is expected to be presented in Parliament on Monday, the opening day of the Monsoon Session.

“We have suggested 285 improvements,” a committee member stated, adding that the bill is likely to be passed during this session.

Once the report is submitted, the government will review the recommendations. If any changes are approved by the Cabinet, the revised bill will then be introduced in the Lok Sabha for final approval.

The government plans to implement the new tax law starting April 1, 2026.

The proposed legislation aims to:

Simplify tax language

Remove outdated provisions

Streamline processes
…to create a more taxpayer-friendly system.

This new bill will replace the existing Income Tax Act of 1961, which has undergone 65 amendments and over 4,000 changes since it came into effect on April 1, 1962.