The new Income Tax Bill, 2025, aimed at simplifying language and modernising the six-decade-old tax law, took 60,000 man-hours to draft. Speaking on Income Tax Day, Finance Minister Nirmala Sitharaman said the bill represents a long-overdue overhaul of the Income Tax Act, 1961, which had become burdened with layers of amendments and legal complexity.
“60,000 man hours were needed in drafting the new Income Tax Bill. Since 1961 it has not been touched and layers and layers got added to it. A comprehensive review had not happened. So, that work which was taken up required that many hours,” the Finance Minister said.
Bill simplifies legal jargon
Sitharaman also praised the Central Board of Direct Taxes (CBDT) for reducing the word count, simplifying legal language, and ensuring the bill was less open to varied interpretations. “I appreciate the CBDT for giving their best to reduce the number of words, simplify the language, and ensure that there are clear sections,” she said.
The bill, over 4,000 pages long, has gone through an extensive parliamentary review. It was introduced in the Lok Sabha in February 2025 and examined by a select committee, which submitted 566 observations. The Finance Minister assured that the committee’s suggestions would be considered seriously.
The Income Tax Bill, 2025, is expected to simplify tax compliance and administration. The department is now working on drafting the rules and forms that will define how the law is implemented in practice.
Sitharaman’s message to taxpayers
Sitharaman delivered a stern message to tax officials over delays in issuing Orders Giving Effect (OGEs), the official enactment of favourable rulings for taxpayers. “The delay in OGE issuance is just not explainable… unpardonable,” she said, stressing the need for strict internal protocols.
Her concerns come amid a November 2024 report by the Comptroller and Auditor General (CAG), which found delays of up to 11 years in some cases. Despite favourable rulings, many taxpayers had yet to receive benefits due to bureaucratic lags.
The minister identified five operational goals: speedy tax demand disposal, timely refunds, withdrawal of minor appeals, addressing grievances, and regional performance tracking. She urged tax officers to “set protocols” to avoid further delays and to restore citizen confidence.
Source from: https://www.financialexpress.com/money/new-income-tax-bill-took-60000-man-hours-to-draft-says-fm-sitharaman-3926071/
