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New Income Tax Bill 2025: Union Finance Minister Nirmala Sitharaman will introduce the revised Income-tax Bill, 2025, in the Lok Sabha
Union Finance Minister Nirmala Sitharaman. (File)
New Income Tax Bill 2025: Union Finance Minister Nirmala sitharaman will introduce the revised Income Tax Bill 2025 in the Lok Sabha today, replacing the original draft tabled on February 13, 2025.
The earlier version was formally withdrawn, drawing criticism over the time and effort spent on its drafting. The government, however, maintains the move is aimed at ensuring legislative clarity and efficiency.
Sitharaman said the fresh draft incorporates technical corrections, including improved phrasing, drafting refinements, and better cross-referencing. A key factor behind the overhaul was the extensive feedback from the Select Committee of Parliament, chaired by BJP MP Baijayant Panda.
Parliamentary Affairs Minister Kiren Rijiju rejected suggestions that the earlier work had gone to waste. “When a parliamentary committee submits a report with several proposed amendments, and many are accepted, the standard practice is to withdraw the original Bill and present a revised version,” he said.
He noted that adopting over 285 suggested changes — including 32 major ones — through the amendment route would have required three separate motions for each, making the process unviable. “Withdrawing and reintroducing the Bill saves time and ensures procedural efficiency,” Rijiju added.
The new draft is expected to include most of the committee’s recommendations. Key provisions include:
- Limiting anonymous donations solely to purely religious trusts, excluding those engaged in social services.
- Allowing taxpayers to claim TDS refunds after the ITR deadline without penalties.
- Mandating tax authorities to issue notices and consider responses before initiating action.
The Bill also proposes a modern, digital-first, faceless assessment system to simplify compliance and curb corruption, while replacing the complex legal language of the 1961 Act with clearer, more accessible terms.
If enacted, the legislation will replace the 63-year-old Income-tax Act with a streamlined, litigation-resistant direct tax code — a reform the government calls one of the most ambitious in recent decades.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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