Income Tax Bill 2025: Centre seeks public input on bill, launches eportal

The new income tax bill seeks to modernise the tax system by simplifying it and ensuring greater transparency

The Central Board of Direct Taxes (CBDT) has invited public input on the Income Tax Bill, 2025, which was introduced in the Parliament on February 13 and is currently under review by a Select Committee. As part of the consultation process, the board has launched an online portal where stakeholders can submit suggestions regarding tax rules and related forms, the Ministry of Finance said in a statement on Tuesday.

 

The new Income Tax Bill aims to ensure greater transparency, simplify tax compliance, and eliminate outdated provisions from the existing Income-tax Act, 1961. The bill represents a major overhaul of India's tax framework, addressing issues that have evolved over the past six decades.

 

 

How to share feedback on I-T Bill

To facilitate public engagement, CBDT’s e-filing portal now features a utility tool allowing taxpayers, professionals, and businesses to submit feedback.

The website can be accessed here: eportal.incometax.gov.in

 

Public must validate their identity through a one-time password (OTP)-based verification using their name and mobile number.

 

Feedback must reference the specific section, sub-section, rule, or form within the Income Tax Rules, 1962, ensuring precise and constructive inputs. The CBDT has categorised suggestions under four key areas:

1. Simplification of language: Making tax laws easier to comprehend.
2. Reducing litigation: Addressing ambiguities that lead to legal disputes.
3. Lowering compliance burden: Simplifying procedures to improve taxpayer experience.
4. Removing redundant provisions: Eliminating outdated rules and forms to enhance efficiency.

 

Key changes in the Income Tax Bill, 2025

The new bill seeks to modernise the tax system by simplifying it and ensuring greater transparency in the document. Some of the major changes include: 

Introduction of a ‘tax year’ system: Replacing the existing Financial Year (FY) and Assessment Year (AY) to eliminate confusion in tax filings. 

Expansion of virtual digital asset (VDA) definition: Covering cryptocurrencies, non-fungible tokens (NFTs), and other digital assets that may be notified by the government. 

Reforming tax recovery and appeals: Implementing new measures to streamline dispute resolution and reduce delays in tax recovery processes.

 

Concise and more accessible legal text: Despite maintaining the same number of chapters, the bill reduces the overall word count, making tax laws easier to interpret. 

Amendments to Section 47: Removing provisions related to land transfers by sick industrial companies and stock exchange demutualisation.