New Delhi, August 11, 2025 – Union Finance Minister Nirmala Sitharaman tabled two landmark bills, the Income-Tax (No.2) Bill, 2025, and the Taxation Laws (Amendment) Bill, 2025, in the Lok Sabha today at 6:44 PM IST, signaling a major overhaul of India’s taxation framework. The bills, incorporating 285 amendments approved by a select committee, aim to simplify tax compliance, enhance transparency, and align India’s tax policies with global standards.
The Income-Tax (No.2) Bill, 2025, introduces reforms to streamline tax structures for individuals and businesses. Key features include revised tax slabs, updated deductions, and enhanced digital compliance mechanisms to reduce paperwork and litigation. The bill is designed to make tax filing more accessible while promoting ease of doing business across sectors.
Complementing this, the Taxation Laws (Amendment) Bill, 2025, addresses gaps in existing tax laws, strengthens enforcement mechanisms, and introduces measures to curb tax evasion. It also aligns India’s tax policies with international best practices, ensuring a robust and equitable tax system.
Speaking in the Lok Sabha, Sitharaman emphasized the government’s commitment to creating a taxpayer-friendly environment. “These bills are a step toward a fairer, simpler, and more efficient tax system that supports economic growth while ensuring fiscal stability,” she said. The Finance Minister highlighted that extensive consultations with stakeholders shaped the proposed reforms.
The introduction of the bills triggered spirited discussions in the Lok Sabha, with opposition MPs raising concerns about the potential impact on small businesses and salaried individuals. Some members called for greater clarity on specific provisions, particularly those affecting low-income groups. The government assured that the amendments were carefully crafted to balance revenue needs with taxpayer relief, and further debates are scheduled to address these concerns.
The bills will now undergo detailed scrutiny by parliamentary committees, with experts and stakeholders expected to provide input before a final vote. If passed, these reforms could significantly reshape India’s tax landscape, fostering a more transparent and efficient system.
Sources: The Indian Express, Times of India, and other leading publications.
