Aim is to reduce litigation, consolidate TDS deduction: PP Chaudhary on new Income Tax Bill
The proposed IT bill has 23 chapters and 536 provisions, a huge reduction from the earlier 47 chapters and 819 provisions from the 1961 bill.
ANI
Jul 25, 2025 16:39 IST
New Delhi [India], July 25 (ANI): The aim of the new Income Tax Bill 2025 is to reduce litigation, simplify the rules for corporate and consolidate the deduction of TDS, said PP Chaudhary, who is a member of the select committee on the Income Tax Bill 2025.
Speaking on the New Income Tax Bill, which seeks to replace the Income-Tax Act, 1961, Chaudhary told ANI that the Bill aims to simplify the language.
"Comparing the 1961 act and Bill 2025 reveals a difference. The total word count varies, with approximately 512,000 words in 1961 and 260,000 in Bill 2025. The number of sections has also changed. The 1961 Act has approximately 819 sections, and the 2025 Bill has 536 sections. Apart from this, numerous provisions make navigation very difficult. However, these have now been synchronised and consolidated..."
"Words like 'notwithstanding,' 'without prejudice,' created interpretational issues. The 1200 provisions were simplified, consolidated, or integrated through fine-tuning. The table and formula were improved for clarity... The deduction of TDS and other provisions has been consolidated, reducing litigation, clarifying the process for taxpayers, especially individuals, and simplifying the rules for corporate and other taxpayers. Bill 2025 addresses these issues positively."
The proposed IT bill has 23 chapters and 536 provisions, a huge reduction from the earlier 47 chapters and 819 provisions from the 1961 bill.
Earlier on July 21, Select Committee on Income Tax Bill Chairperson and Bharatiya Janata Party MP Baijyant Panda presented the 4,584 pages report of the Select Committee on the Income-Tax Bill, 2025 in the Lok Sabha. The 31-member committee had unanimously adopted the report during the meeting held earlier.
After comprehensive deliberations, the Committee submitted 285 recommendations focused on simplifying the tax regime and making the Income Tax legislation simplified and lucid.
The Committee in its report identified several drafting corrections based on stakeholder suggestions, which they believe are essential for clarity and unambiguous interpretation of the new bill. The parliamentary panel has made a total of 566 suggestions/recommendations in its report. (ANI)
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