Baijayant Panda to chair Income-Tax Bill Committee on March 6-7

New Delhi

The Select Committee of the Lok Sabha, led by BJP Vice President and MP Baijayant Panda, will review the Income-Tax Bill 2025 on March 6 and 7, 2025. The committee will hear oral evidence on March 6 from representatives of the Institute of Chartered Accountants of India (ICAI) and Ernst & Young (EY). On March 7, representatives from the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) will provide evidence.

A 31-member Select Committee, appointed by Lok Sabha Speaker Om Birla, is tasked with examining the bill, which aims to simplify tax laws, modernize definitions, and clarify tax matters. This bill, introduced by Finance Minister Nirmala Sitharaman on February 13, seeks to replace the 1961 Income Tax Act. It introduces significant changes affecting individuals, businesses, and non-profit organizations.

Notable updates in the new bill include simplified language and modern terminology. Terms like tax year replace financial year and assessment year, while concepts like virtual digital asset and electronic mode are introduced to address digital transactions and cryptocurrency. The bill also clarifies rules around global income taxation for Indian residents and income earned in India by non-residents.

Furthermore, the bill consolidates deductions, introduces provisions supporting startups, digital businesses, and renewable energy, and updates capital gains tax rules to include virtual digital assets. The bill also enhances compliance for non-profit organizations. Overall, the 2025 Income Tax Bill is designed to streamline tax processes and foster growth in digital and startup sectors.