New income tax bill to simplify tax filing for commoners, small businesses: Jay Panda
Speaking to IANS, he emphasised that the new law, once passed, will simplify India's decades-old tax structure, cut down legal confusion, and help individual taxpayers and MSMEs avoid unnecessary litigation.
"The current Income Tax Act of 1961 has undergone more than 4,000 amendments and contains over 5 lakh words. It has become too complex. The new bill simplifies that by nearly 50 per cent -- making it far easier for ordinary taxpayers to read and understand," Panda told IANS.
He highlighted that the greatest beneficiaries of this simplification would be small business owners and MSMEs who often lack the legal and financial expertise to navigate complicated tax structures.
'Unlike large corporations that have access to tax consultants and legal advisors, MSMEs and common taxpayers struggle. A simpler law means fewer disputes and easier compliance,' he said.
The Select Committee, under Panda's leadership, held 36 uninterrupted meetings over several months.
It consulted more than a hundred stakeholders, including industry bodies and individual experts.
Panda noted with pride that not a single meeting was postponed and no extension was sought, making this committee a rare example of efficient parliamentary functioning.
The report, which includes over 300 recommendations, has been submitted well within schedule and is expected to be tabled during the current Monsoon Session.
'If passed, the new law could take effect from April 1 next year,' he added. Panda credited this success to bipartisan cooperation.
"There was no political point-scoring. Every member focused on simplifying the tax law for the benefit of taxpayers. It was truly a team effort in the national interest," he told IANS.
'While the bill itself does not change tax policies -- which remain the domain of the Finance Bill and the Union Budget -- it lays a modern, simplified foundation that allows existing and future tax policies to be implemented more clearly and effectively,' he added.
Panda also clarified that the committee did not propose any policy changes but ensured the legal structure accommodates all recent reforms and is accessible to every citizen.
"Simplifying the law itself helps policy implementation and reduces confusion for both taxpayers and tax administrators," he said.
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