FM Nirmala Sitharaman introduces revised Income Tax bill in Lok Sabha

• 11 Aug 2025
• 386 Views

On 11 August 2025, Finance Minister Smt. Nirmala Sitharaman introduced a revised Income Tax Bill in the Lok Sabha after inclusion of almost all recommendations made by the Select Committee. The Finance Minister, while introducing the Income Tax (No. 2) Bill 2025, said the bill seeks to consolidate and amend the law pertaining to income tax and will replace the Income Tax Act 1961. 

The revised draft of the bill incorporates the Select Committee’s 285 recommendations. It will make the tax processes simplified, address the previous shortcomings and potentially restructure the income tax framework of India.

According to the statement of objects and reasons of the bill, "Almost all of the recommendations of the Select Committee have been accepted by the government. In addition, suggestions have been received from stakeholders about changes that would convey the proposed legal meaning more accurately." A host of changes were suggested by the Baijayant Panda-chaired Select Committee in the Income Tax Bill introduced in Lok Sabha on 13 February 2025. 

The statement said, “There are corrections in the nature of drafting, alignment of phrases, consequential changes and cross-referencing. Therefore, a decision has been taken by the government to withdraw the Income Tax Bill, 2025 as reported by the Select Committee. Consequently, Income-tax (No. 2) Bill, 2025 has been prepared to replace the Income-tax Act, 1961.”

Source: 

• The Hindu
• The Free Press Journal