Lok Sabha has approved two key tax laws today, both introduced by Nirmala Sitharaman amid protests over Bihar electoral roll revision. First comes the revised Income-Tax (No 2) Bill, 2025, which replaces the old Income-Tax Act of 1961. It incorporates almost all suggestions from the Parliamentary Select Committee led by Baijayant Panda this includes removing penalties for late ITR filings and permitting NIL TDS certificates. The bill passed without any debate. Alongside, the Taxation Laws (Amendment) Bill, 2025 also went through. Both aim to consolidate and simplify India’s tax regime.
These bills mark a clean break from outdated tax rules. The revised Income-Tax Bill drastically trims and streamlines complex directives inherited from the 1961 framework. With more clarity and fewer provisions, it aims to reduce litigation and speed up compliance. Removing late-filing penalties and easing TDS norms signals a shift toward taxpayer-friendly processes. Passing them without debate signals urgency, though it raises questions about scrutiny.
What this really means is this: tax laws are getting a much-needed refresh, intended to cut confusion and red tape. Let me know if you’d like a breakdown of what comes next or how this affects different groups of taxpayers.
