No more tax gridlock? Parliamentary panel recommends time-bound resolution of tax cases in I-T bill

A parliamentary panel examining the Income Tax Bill, 2025, has recommended a time-bound resolution of litigations, while making a total of 285 suggestions on the draft legislation, which aims to simplify and modernise India’s tax laws, The Times of India (TOI) reported.

The draft bill was reviewed by a select committee of the Lok Sabha chaired by BJP MP Baijayant Panda, and the report is expected to be tabled in the House on July 21, the opening day of the monsoon session of Parliament.

"We have made 285 recommendations. The government has already accepted 250. We have said tax litigations should not linger on and there should be time-bound resolution, although huge improvements have happened as can be seen in the case of refunds," a panel member told TOI.


According to panel member, most of the suggestions made were "corrective" in nature. The simplification efforts have reduced the length of the document from 850 pages to 600. The Income Tax Bill, 2025, was introduced in Parliament on February 13 with the objective of streamlining the language and structure of the Income Tax Act, 1961. It was subsequently referred to the select committee for detailed examination.

As per an official statement cited by TOI, the simplification exercise was guided by three core principles: textual and structural clarity for better coherence, continuity in tax policy to ensure certainty, and no changes to tax rates to maintain predictability for taxpayers.

The revamped legislation also seeks to eliminate redundant and repetitive provisions, reorganise sections for easier reference, and simplify language to make the law more accessible. Obsolete clauses have been removed to enhance clarity, while retaining the core principles of taxation to ensure consistency and usability, the statement said.

"The Income-Tax Bill, 2025, reflects the government’s commitment to enhancing ease of doing business by providing a tax framework that is simplified and clear," it added.

In an interview to TOI earlier this year, a day after presenting her eighth consecutive Budget, finance minister Nirmala Sitharaman had said the new Income Tax Bill was designed to be relevant for the 21st century.

Central Board of Direct Taxes (CBDT) chairman Ravi Agrawal also told TOI that the language and presentation had been simplified to bring more clarity to the tax system, which is expected to help reduce litigation.

With inputs from ToI