CBDT Invites Stakeholder Input on India’s New Income Tax Bill, 2025

The Central Board of Direct Taxes (CBDT) has opened the floor for public feedback on the proposed Income Tax Bill, 2025, which aims to overhaul and modernize India’s tax framework. Introduced in the Lok Sabha on February 13, 2025, the bill is presently under examination by a Parliamentary Select Committee.

The Central Board of Direct Taxes (CBDT) has invited stakeholders to contribute their inputs for drafting the income-tax rules and associated forms under the proposed Income Tax Bill, 2025. Introduced in the Lok Sabha of the Parliament on February 13, 2025, the bill is currently under review by a Parliamentary Select Committee.

As part of this ongoing legislative reform, stakeholders—including taxpayers, tax professionals, industry bodies, and business entities—are encouraged to submit their suggestions on various provisions of the bill. The feedback will be consolidated and presented to the committee for further deliberation.

Objectives of seeking industry feedback

In a statement issued on March 18, 2025, the CBDT emphasized that the industry consultation initiatives align with the broader objective of replacing the Income-tax Act, 1961, and simplifying the accompanying rules and compliance procedures. To facilitate public participation, the Ministry of Finance has activated a dedicated feedback link on the Income Tax Department’s e-filing portal, available since March 8, 2025. This marks a key step in ensuring that the new tax framework is inclusive, transparent, and responsive to the needs of India’s evolving tax ecosystem.

Step-by-step guide to submitting feedback on the Income Tax Bill, 2025

To promote inclusive stakeholder participation, the CBDT has introduced a dedicated feedback utility on its e-filing portal, eportal.incometax.gov.in. This initiative invites relevant stakeholders to share their inputs and suggestions on the proposed Income Tax Bill, 2025. 

Interested contributors can submit their feedback by following the steps outlined below:

1. Visit the CBDT e-filing website, and on the homepage, click on the What’s New section. 
2. Next, click on the press release tab “Seeking stakeholders’ input for drafting Income-tax Rules and related forms consequent to the Income Tax Bill, 2025.“
3. In the dossier, you can access the utility link to the feedback submission. To access the link Click here
4. Log in to the portal using valid user credentials.
5. Verify your identity through a one-time password (OTP), which will be sent to your registered mobile number.
6. Submit your feedback, clearly referencing specific sections, sub-sections, rules, or forms under the Income Tax Rules, 1962, for greater precision and relevance.

The Union Ministry of Finance is expected to announce the submission deadline for feedback in due course. 

Key highlights of the proposed Income Tax Bill, 2025

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The Income Tax Bill 2025 introduces a series of noteable changes aimed at simplifying the tax framework and aligning it with evolving economic and technological realities. These proposed changes reflect India’s objective to modernize tax administration, enhance compliance efficiency, and provide greater clarity for its taxpayers.

One of the most notable proposals is the introduction of a ‘unified tax year’ system, intended to replace the current structure of Financial Year (FY) and Assessment Year (AY). This change is expected to reduce confusion in tax filings and bring more coherence to the compliance cycle.

The bill also broadens the definition of Virtual Digital Assets (VDAs). The expanded scope explicitly includes cryptocurrencies, non-fungible tokens (NFTs), and other digital instruments, with provision for additional asset classes to be notified by the government. This reflects a more comprehensive regulatory approach to emerging digital assets.

A revamped recovery and appeals mechanism has also been proposed to streamline tax recovery processes and expedite dispute resolution, thereby minimizing procedural delays and enhancing administrative efficiency.

Another significant aspect of the bill is the use of simplified and reader-friendly legal language. While the number of chapters remains unchanged, the content has been reformatted for better clarity and comprehension.

Furthermore, the bill proposes amendments to Section 47 of the Income Tax Act, removing certain clauses related to land transfers by sick industrial companies and the demutualization or corporatization of stock exchanges—indicating a shift toward a more focused and contemporary legislative framework.

Next steps and finalization of the bill

Following the conclusion of the stakeholder consultation phase, all feedback received through the CBDT’s e-filing portal will be carefully reviewed and compiled for submission to the Parliamentary Select Committee currently examining the proposed Income Tax Bill, 2025. The Committee will evaluate these recommendations alongside internal deliberations to refine the legislative provisions, rules, and associated forms.

Meanwhile, the Ministry of Finance and CBDT are expected to initiate the drafting of updated Income-tax Rules and procedural guidelines, reflecting the new legislative framework. The timeline for the final rollout of the new tax regime will depend on the progress of legislative discussions and the formal passage of the bill through both Houses of Parliament.

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