Finance Minister Nirmala Sitharaman has introduced the Income Tax Bill 2025 in the Lok Sabha. The purpose of the new bill is to simplify tax laws in India. By making the language easier, the government hopes to help taxpayers understand and file their taxes more easily.

Opposition walks out over new bill

As soon as Nirmala Sitharaman introduced the bill, there was chaos in the Parliament. Many opposition MPs protested and staged a walkout. However, it is not clear exactly how many MPs left the session.

Opposition's objections and Sitharaman’s response

Some opposition leaders raised concerns about the bill. MP NK Premachandran from Kerala’s Kollam questioned why the new bill has more sections than the previous Income Tax Act of 1961. In response, Sitharaman explained, “He should understand where the law is today and where it is being reduced.”

She further added, “The Income Tax Act was originally enacted in 1961 and came into effect in 1962. At that time, they had only 298 sections…But as time went by, many more sections were added. As it stands today, there are 819 sections. From that 819, we're bringing it down to 536. So he should look at what it is today.”

She also pointed out that 4,000 amendments have been made to the 1961 Act over the years, and they are being reviewed now.

When TMC MP Sougata Ray said that the changes in the bill were only “mechanical,” Sitharaman disagreed. She said, “They're not mechanical changes. Substantial changes are being made. The number of words has come down by half. Sections and chapters have come down. It is in plain, simple English and plain, simple Hindi.”

Sitharaman proposed that the Income Tax Bill 2025 be sent to a newly formed Select House Committee. She said, “The terms and conditions regarding the committee will be decided by [Speaker Om Birla].”

The committee is expected to submit its report on the “first day of the next session.”

Read: New Income Tax Bill 2025: Simpler language and major changes