The Select Committee of the Lok Sabha, tasked with examining the Income Tax Bill-2025, has adopted its report on Wednesday, July 16, 2025. This action clears the path for the bill to be presented to the House on Monday, July 21, 2025, marking the commencement of the Monsoon session. The bill is likely to be passed during this session.

Chaired by BJP leader Baijayant Panda, the parliamentary panel has proposed 285 suggestions to the draft legislation. A committee member confirmed the number of suggestions made to the bill. The 3,709-page report will be presented to the Lok Sabha. After the committee submits its report, the government will consider these recommendations and present the Bill in the Lok Sabha for consideration and passage. If required, the government will seek approval from the Cabinet before moving the bill for consideration. The government is aiming to implement the new Income Tax law from April 1, 2026.

The Income Tax Bill 2025 aims to modernize and simplify the country's tax laws. According to the government, the new Bill aims to simplify language, eliminate redundancy, and streamline procedures and processes to enhance the taxpayer experience. Once enacted, the new Bill will replace the Income Tax Act, 1961, which came into force from April 1, 1962. The 1961 Act has been amended 65 times, with over 4,000 modifications made to its various sections.

The Monsoon Session of Parliament is scheduled to commence on July 21 and will consist of 21 sittings in both houses until August 21. The session will take a break from August 12 to August 18 for Raksha Bandhan and Independence Day celebrations. The government is expected to present the Income Tax Bill, 2025 during the Monsoon Session. The Bill was introduced in the Lok Sabha in February and was referred to a Select Committee of the Lower House.

The session is expected to witness confrontations between the ruling Bharatiya Janata Party (BJP) and the Opposition. The government is also set to seek Parliament's approval for an extension of President's Rule in Manipur and place the Demand for Grants of the state for the approval of the House. Among the Bills planned for the Monsoon Session are the National Sports Governance Bill, the Geoheritage Sites and Geo-relics (Preservation and Maintenance) Bill, the Mines and Minerals (Development and Regulation) Amendment Bill and the National Anti-Doping (Amendment) Bill.