STATEMENT - STATEMENT OF OBJECTS AND REASONS + PRESIDENT’S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA - Income Tax Bill, 2025

STATEMENT OF OBJECTS AND REASONS The Income-tax Act passed in 1961 has been subjected to numerous amendments since its passage sixty years ago. As a result of these amendments the basic structure of the Income-tax Act has been overburdened and language has become complex, increasing cost of compliance for taxpayers and hampering efficiency of direct-tax administration. Tax administrators, practitioners and taxpayers have also raised concerns about the complicated provisions and structure of the Income-tax Act. Therefore, the Government in the budget in July 2024 announced that a time bound comprehensive review of the Income-tax Act, 1961 would be undertaken to make the Act concise, lucid, easy to read and understand. Accordingly, the Income-tax Bill, 2025 has been prepared which proposes to repeal and replace the Income-tax Act, 1961. The Notes on clauses explain in detail the various provisions contained in the Bill. NIRMALA SITHARAMAN NEW DELHI;. The 8th February, 2025. _____ PRESIDENT S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA _____ [ Copy of letter No. 370134/18/2025 - TPL dated 10 February 2025 from Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs to the Secretary General, Lok Sabha ] The President, having been informed of the subject matter of the Income-tax Bill, 2025, recommends the introduction and consideration of the Bill in Lok Sabha under article 117(1) and (3), read with clause (1) of article 274 of the Constitution.