Congress MP Manish Tewari criticized the new Income Tax Bill on Thursday, claiming that it is more complicated than the previous version, contrary to Union Finance Minister Nirmala Sitharaman’s assurances. Tewari pointed out that the new bill is far lengthier and more intricate than its predecessor.
“The Finance Minister had stated that the new Income Tax Bill would be simpler than the previous one. However, the old bill had 296 sections, while the new one has over 500. The previous bill had five schedules, while the new one has 14,” Tewari told ANI. “Instead of simplifying the law, the new bill has made it more complicated,” he added.
The new Income Tax Bill is set to be introduced in the Lok Sabha on Thursday, with the government planning detailed consultations. The bill is likely to be referred to a Select Committee for further review.
Last week, the Union Cabinet cleared the bill, and Sitharaman had indicated that it would undergo scrutiny by a parliamentary committee. She mentioned that the committee would provide recommendations, which the government would review before deciding on any amendments.
In the July 2024 Budget, the government had announced a comprehensive review of the Income-tax Act of 1961, aiming to make it more concise and reduce litigation and disputes. Sitharaman reiterated this goal during her budget speech on February 1, 2025, noting several reforms the government has implemented over the past decade to ease the tax process. These include faceless assessments, a taxpayer charter, faster return processing, self-assessment returns, and the Vivad se Vishwas scheme.
Sitharaman had also committed to introducing the new Income Tax Bill soon, continuing efforts to make the tax system more transparent and efficient.