Lok Sabha: Finance Bill 2025 passed by Lok Sabha, Finance Minister Sitharaman described as giving relief to taxpayers

New Delhi| The Lok Sabha passed the Finance Bill 2025 after incorporating 35 government amendments. Earlier, Finance Minister Nirmala Sitharaman described the Finance Bill 2025 as providing unprecedented tax relief for taxpayers. Speaking in the Lok Sabha, the Finance Minister said that the middle class and businesses are expected to get relief through this bill.

During this, Finance Minister Nirmala Sitharaman indicated important tax reforms in the Lok Sabha on Monday. He said that to remove international economic uncertainty, equalization charges on online advertisements will be abolished. Along with this, the Finance Minister informed that the estimate of 13.14% increase in personal income tax collection in 2025-26 despite revenue loss of Rs 1 lakh crore is realistic.
The new Income Tax Bill will be discussed during the monsoon session of Parliament
Sitharaman also said that rational changes in customs duty will boost manufacturing in the country, boost exports and provide relief to the general public from inflation. He said that the new Income Tax Bill will be discussed in the next monsoon session of Parliament. Responding to the discussion on the Finance Bill 2025 in the Lok Sabha, Sitharaman said that the new Income Tax Bill, which was introduced in the House on 13 February, is currently being scrutinized by the Select Committee.

The Select Committee has been directed to submit its report by the first day of the next session of Parliament. Sitharaman said, ‘‘…We will bring it (new Income Tax Bill) in the monsoon session.’’ The monsoon session of Parliament is usually held in July and lasts until August.

Finance Minister shared information related to the new bill
The Income Tax Department previously stated that the Simplified Income Tax Bill, which is half of the Income Tax Act of 1961, seeks to achieve tax certainty by reducing the scope for litigation and new interpretation. The number of words in the new bill is 2.6 lakh, down from 5.12 lakh in the IT Act. The number of sections in it is 536 against 819 effective sections in the existing law. The number of chapters has also been reduced from 47 to half 23. The Income Tax Bill 2025 has 57 tables compared to 18 tables in the existing Act and 1,200 provisions and 900 clarifications have been removed.