According to Baijayant Jay Panda, a BJP MP who chaired the Parliamentary Select Committee tasked with reviewing the legislation, the new income tax bill will make it simpler for small businesses and regular citizens to file taxes.
He emphasized in an interview with IANS that the new law, if it is passed, will streamline India’s long-standing tax system, eliminate legal ambiguity, and assist MSMEs and individual taxpayers in avoiding needless litigation.
“There are over 4,000 modifications and more than 5 lakh words in the present Income Tax Act of 1961. It’s gotten too complicated. Panda told IANS that the new bill simplifies that by almost 50%, making it much simpler for regular taxpayers to read and comprehend.
He emphasized that MSMEs and small business owners, who frequently lack the financial and legal know-how to handle complex tax structures, would benefit the most from this simplification.
“MSMEs and regular taxpayers have difficulties, in contrast to large firms that have access to tax specialists and legal counsel. “There will be fewer disputes and easier compliance with a simpler law,” he stated.
Panda led the Select Committee through 36 consecutive meetings over a number of months.
Over one hundred stakeholders, including trade associations and individual specialists, were consulted.
Panda proudly pointed out that this committee is a unique example of effective parliamentary functioning because not a single meeting was postponed and no extension was requested.
The report was turned in well ahead of schedule and is anticipated to be tabled during the current Monsoon Session. It contains more than 300 recommendations.
“The new law could go into effect on April 1st of next year if it is passed,” he continued. Panda attributed this achievement to collaboration between the two parties.
“Political points were not awarded. For the benefit of taxpayers, each member concentrated on making the tax code simpler. In the interest of the country, it was genuinely a joint effort,” he told IANS.
“The bill lays a modern, simplified foundation that allows existing and future tax policies to be implemented more clearly and effectively, even though it does not alter tax policies themselves—which remain the purview of the Finance Bill and the Union Budget,” he continued.
Panda added that the committee made sure the legal framework is accessible to all citizens and supports all recent reforms, but it did not suggest any changes to the policies.
“Simplifying the law itself helps policy implementation and reduces confusion for both taxpayers and tax administrators,” he stated.
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