A Lok Sabha committee has approved the Income Tax Bill, 2025, with 285 suggestions for improvement.
Most updates are language changes aimed to simplify and modernize the tax law.
The draft has been reduced from 850 to about 600 pages, making it easier to un
derstand.
A major fix includes setting deadlines for resolving tax cases to avoid delays.
The panel also recommends restoring Section 80M deductions on inter-company div
idends.
The Bill will clarify residency rules for NRIs and update withholding requirements.
Some MPs flagged concerns about tax officials’ search & seizure powers, but most pr
ovisions remain.
The report will be tabled in Parliament on July 21, during the monsoon session.
Since most suggestions were accepted, the Bill is expected to pass smoothly.
The overall aim: a simpler, fairer, and faster tax law for both individuals
and businesses.