Income Tax Bill 2025 Introduced in Lok Sabha Amid Opposition Walkout

Finance Minister Nirmala Sitharaman has introduced the Income Tax Bill 2025 in the Lok Sabha, aiming to simplify tax law terminology and make it easier for taxpayers to file returns.

However, the bill’s introduction sparked protests, with several Opposition MPs staging a walkout. The exact number of MPs who left the session remains unclear.

Opposition Raises Concerns

Opposition MP NK Premachandran from Kerala’s Kollam objected to the new bill, noting that it has more sections than the 1961 Income Tax Act. In response, Sitharaman clarified, “The 1961 Act initially had 298 sections, but amendments increased this to 819 over the years. With the new bill, we are reducing it to 536. He should compare it with what exists today.”

She further stated that the 1961 Act has undergone 4,000 amendments over time, which are now being reviewed.

Responding to TMC MP Professor Sougata Ray’s claim that the changes in the bill were merely “mechanical,” Sitharaman countered, “These are not mechanical changes. Substantial modifications have been made. The number of words has been cut in half, sections and chapters have been reduced, and the language has been simplified in both English and Hindi.”

Bill to Be Reviewed by House Committee

Sitharaman proposed that the Income Tax Bill 2025 be sent to a newly formed Select House Committee for further review. The terms of the committee will be determined by Speaker Om Birla, and the committee is expected to submit its report on the first day of the next session.