The Union government withdrew the Income tax Bill 2025 from the Lok Sabha on Friday. The Bill was introduced on February 13, 2025 was created to replace the six-decade old Income Tax Bill, 1961.
The authorities said that the withdrawal will prevent any confusion from the varied versions of the legislation. They further added that the policymakers will now get a single, updated draft comprised of all the changes.
New Bill to Be Introduced on…
Finance Minister Nirmala Sitharaman will present a fresh version of the Bill in the Lok Sabha on Monday, August 11. This updated draft includes most recommendations from the Select Committee, chaired by BJP MP Baijayant Panda, which reviewed the earlier proposal in detail before submitting its report.
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The revised Bill is expected to modernise India’s direct tax system, simplify compliance procedures, and resolve long-standing tax administration issues.
Events in Lok Sabha
During Friday’s proceedings, opposition parties staged loud protests demanding a discussion on the revision of electoral rolls in Bihar. As disruptions continued, the Lok Sabha was adjourned for the day.
Before adjournment, Sitharaman formally withdrew the earlier Bill after seeking leave from the House. Parliamentary Affairs Minister Kiren Rijiju criticised the opposition for “wasting time” when private member bills were scheduled.
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“It is unfortunate that opposition parties are wasting time when private member bills were to be taken up,” Rijiju said, adding that the government has always been willing to discuss issues under parliamentary rules.
Objective of the Updated Draft
The officials said that the new Income Tax Bill will combine the initial proposals with the Select Committee’s Suggestions in order to form a streamlined and understandable framework. The centre hopes to make the legislative process much smoother and transparent by presenting a consolidated version of the Bill.
The new draft is expected to bring important reforms to India’s tax regime. It will align with urban economic practices and improve the experience for the taxpayers.
