Overview

• The 31-member Select Committee chaired by Baijayant Panda finalized its report on July 16 with 285 recommendations to simplify and modernize the draft Income Tax Bill, accepting 250 of them
• The legislation will repeal the Income Tax Act of 1961 and introduce clearer language, faceless assessments, digital asset rules and streamlined dispute resolution for implementation from April 1, 2026
• The revised draft is slated for tabling in the Lok Sabha on July 21 at the opening of the Monsoon Session alongside a mines reform bill while Insurance and IBC amendments are omitted from the agenda
• Key technical tweaks include the restoration of inter-corporate dividend deductions, elimination of a late-filing no-refund clause and mandates for time-bound resolution of tax litigations
• With unanimous committee approval and no reported opposition objections, the government is poised to seek Cabinet sign-off and guide the bill through Parliament