The Benefits of the New Income Tax Bill Will Be Reduced Complexity, Increased Compliance, Liberal Tax Rates, and Minimised Legal Disputes” – Ms. Mitali Madhusmita, Principal Chief Commissioner of Income Tax, Andhra Pradesh & Telangana
Hyderabad, April 17, 2025: The Federation of Telangana Chambers of Commerce and Industry (FTCCI) hosted an interactive overview meeting on the New Income Tax Bill & Finance Act 2025 (ITB 25), featuring Ms. Mitali Madhusmita, Principal Chief Commissioner of Income Tax, Andhra Pradesh & Telangana, as the Chief Guest.
Addressing the gathering, Ms. Madhusmita highlighted the government’s commitment to promoting voluntary compliance, enhancing the ease of doing business, and progressing towards a $5 trillion economy, a vision laid out by Hon’ble Prime Minister Shri Narendra Modi.
“The government is moving towards decriminalising minor tax offences, including delays in TDS filings and minor IT return issues. These were historically seen as areas of fear and friction, and the shift from prosecution to penalty is a welcome move,” she said.
Simplified & Modern Legislation
The Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, 2025, aims to replace the Income-Tax Act, 1961, while retaining its core provisions. The new bill simplifies the structure, reducing over 700 sections to 536, and introduces the concept of a unified “Tax Year”, replacing the existing “Previous Year” and “Assessment Year”.
“This bill is designed to be simple, clear, and predictable, guided by global best practices and tailored to modern economic needs,” Ms. Madhusmita explained. “It empowers taxpayers, reduces litigation, and ensures better digital compliance.”
The act has consolidated chapters from 47 to 23, minimising ambiguity, which previously led to nearly 4,000 amendments over the years. “The old act left a lot to interpretation, benefiting only legal professionals. This reform brings clarity,” she added.
Regional Impact & Participation
Ms. Madhusmita also shared that direct tax collections from Andhra Pradesh and Telangana have increased significantly — from ₹1 lakh crore last year to ₹1.19 lakh crore this year — reflecting the region’s growing compliance and economic activity.
Around 150 participants attended the session.
FTCCI’s Role and Industry Contribution
In his welcome address, Dr. Suresh Kumar Singhal, President of FTCCI, emphasised the chamber’s proactive role in analysing the bill and submitting constructive feedback to the Finance Ministry, including corrections, simplifications, and suggestions to resolve technical challenges.
Mr. Sudhir VS, Chairman of the Direct Taxes Committee at FTCCI, added that nearly 200 man-hours were invested in reviewing the bill and compiling insights that were shared with the government.
Technical Sessions
The event also featured three in-depth technical sessions:
- Session 1: Overview of Finance Act, 2025 – Speaker: Alka Zanwar | Chair: Gopalakrishnan N
- Session 2: Income Tax Bill, 2025 – Speaker: Rajendra Prasad | Chair: T. Ramdev Bhutada
- Session 3: Overview of Appeals, Prosecutions, Penalties, Assessments, and Reassessments under ITB 2025 – Speaker: GS Prashanth | Chair: Poorna Chander Rao M
The program aimed to familiarise tax professionals and industry stakeholders with the key changes and ensure smooth adoption of the new tax regime.