New Delhi, July 21 -- India's most significant direct tax reform in over six decades moved a step closer to becoming law on Monday, as the Select Committee of the Lok Sabha submitted its report on the draft Income Tax Bill, 2025. The panel broadly endorsed the government's goal of simplifying the tax code, but recommended a series of changes to address potential ambiguities, safeguard taxpayer rights, and ensure regulatory continuity.

The report, tabled by committee chairperson Baijayant Panda, a member of parliament from the Bharatiya Janata Party (BJP), comes a few months after the bill was introduced in Parliament in February by finance minister Nirmala Sitharaman. The proposed law is intended to replace the Income Tax Act of 1961, wh...