Panel Clears Income Tax Bill With 285 Changes
The Parliamentary Standing Committee has approved the Income Tax Bill, 2025 with a total of 285 suggested changes, aiming to simplify tax procedures, reduce litigation timelines, and improve overall compliance. The bill is set to be introduced in the upcoming Monsoon Session of Parliament, with implementation targeted for the next financial year.
One of the key recommendations is the introduction of time-bound resolution mechanisms for tax disputes. This is expected to reduce long-pending cases and boost taxpayer confidence in the system. The new framework will enforce defined timelines for both tax assessments and appeals.
Relief for Corporates on Dividends
The committee has also recommended restoring inter-corporate dividend deductions, which were earlier removed. This change will help prevent double taxation on dividend income received by companies from their subsidiaries, easing the financial burden and encouraging smoother intra-group capital flow.
Debate Over Search and Seizure Provisions
While the bill received general backing, Clause 247(1) has raised concerns among some members. This clause expands the powers of tax officials to search premises and seize both physical and digital records. The panel has urged the government to insert checks and balances to prevent possible misuse of these powers, while retaining the provision.
Bill Restructured for Simplicity
To make the law more user-friendly, the committee has suggested cutting down redundant clauses and reorganising the bill’s structure. The revised version will reduce the bill’s length from over 800 pages to approximately 600, improving accessibility for professionals and taxpayers alike.
The final report will be tabled in the Lok Sabha on July 21. With wide consensus among members and no change in tax slabs or rates, the bill is expected to pass smoothly.
