The new Income Tax law has been unanimously adopted on 16th July, 2025 by the Select Committee in the Parliament, which was introduced by the Finance Minister Nirmala Sitharaman on 13th February, 2025 This new income tax law will be replacing the existing Income Tax Act of 1961. The Central Government plans to introduce the bill in the Lok Sabha on 21st July 2025, the opening day of the Monsoon Session.
The 31-member Select Committee, chaired by the BJP leader Baijayant Panda, had made 285 recommendations in the draft new income tax law, out of which, 250 recommendations have already been incorporated in the draft legislation which is slated to be presented in the Lok Sabha in the Monsoon Session. Most of the recommendations of the Select Committee were focused on simplifying terminology and language to reduce ambiguity thereby reducing the draft new tax law from 850 to 600 pages. As per reports, no opposition party MP had raised any objections and the draft legislation was adopted unanimously.
What stands out in this process is the consensus across political lines. No member of the Committee, including those from opposition parties, raised objections to the bill. This signals strong political backing for a long-overdue overhaul of the country’s tax law and suggests a smooth path ahead in Lok Sabha.
The upcoming Monsoon Session will be critical in determining how soon the new tax law is implemented. If passed, the law could significantly reshape how individuals and businesses interact with the tax system in India, marking a major milestone in the country’s legislative and economic landscape.