The New Income Tax Bill 2025 was passed by the Lok Sabha on Monday after Finance Minister Nirmala Sitharaman introduced a revised version that incorporated most of the recommendations made by the Select Committee headed by MP Baijayant Panda. The bill was tabled on Monday after the government decided to withdraw the Income-Tax Bill, 2025, which was presented on February 13 to replace the six-decade-old Income-Tax Act, 1961. The bill must be passed by the Rajya Sabha and will then seek the President’s nod.&nbsp;The new bill is designed to simplify and update India’s taxation system, replacing legislation that had been in effect for over 60 years. It includes a revised structure, provisions for digital taxation, systems for resolving disputes, and initiatives to expand tax collection through technological and data-driven methods. While presenting The Income-Tax (No.2) Bill, 2025, Sitharaman explained that this legislation aims to streamline and update income tax regulations, replacing the existing Income Tax Act, 1961.&nbsp;The new version, which includes the majority of 285 recommendations made by the Parliamentary Select Committee led by BJP MP Baijayant Panda, was presented on Monday and passed promptly.&nbsp;

<blockquote class="twitter-tweet"><a href="https://twitter.com/hashtag/monsoonsession2025?src=hash&amp;ref_src=twsrc%5Etfw">#monsoonsession2025</a> <a href="https://twitter.com/hashtag/LokSabha?src=hash&amp;ref_src=twsrc%5Etfw">#LokSabha</a> passes The Income-Tax (No.2) Bill, 2025. The Bill consolidates and amends the law relating to income tax.<a href="https://twitter.com/nsitharamanoffc?ref_src=twsrc%5Etfw">@nsitharamanoffc</a> <a href="https://twitter.com/nsitharaman?ref_src=twsrc%5Etfw">@nsitharaman</a> <a href="https://twitter.com/LokSabhaSectt?ref_src=twsrc%5Etfw">@LokSabhaSectt</a><a href="https://twitter.com/loksabhaspeaker?ref_src=twsrc%5Etfw">@loksabhaspeaker</a> <a href="https://t.co/wqYeCrWk9G">pic.twitter.com/wqYeCrWk9G</a>&mdash; SansadTV (@sansad_tv) <a href="https://twitter.com/sansad_tv/status/1954858998148046911?ref_src=twsrc%5Etfw">August 11, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>Select Committee presented 4,575-page report</h2> The Parliamentary Select Committee, comprising 31 members, presented their comprehensive 4,575-page findings last month. Their recommendations include both small adjustments and 32 significant modifications. The parliamentary panel had flagged multiple drafting errors and suggested amendments to reduce ambiguity. The committee said the changes would improve fairness and clarity while aligning the law with existing provisions. FM Sitharaman said the earlier bill was pulled back to avoid confusion and that the fresh draft will serve as the basis for replacing the 1961 Act. <h2>Significant reforms in direct tax code in over 60 years</h2> The draft bill introduced in February was described as the most significant reform of India’s direct tax code in over 60 years. Its key features were simplified language, consolidation of deductions, and shorter provisions to ease compliance. It also included lower penalties for certain offences to make the system more taxpayer-friendly and reduction in litigation through a “trust first, scrutinise later” approach. The earlier draft had 23 chapters, 536 sections, and 16 schedules, using tables and formulas for easier interpretation. It also proposed streamlined TDS rules, simplified depreciation provisions, and retention of residency criteria and financial year timelines.

The Parliamentary Select Committee, comprising 31 members, presented their comprehensive 4,575-page findings last month. The recommendations of the committee include both small adjustments and 32 significant modifications.

The New Income Tax Bill 2025 was passed by the Lok Sabha on Monday after Finance Minister Nirmala Sitharaman introduced a revised version that incorporated most of the recommendations made by the Select Committee headed by MP Baijayant Panda. The bill was tabled on Monday after the government decided to withdraw the Income-Tax Bill, 2025, which was presented on February 13 to replace the six-decade-old Income-Tax Act, 1961. The bill must be passed by the Rajya Sabha and will then seek the President’s nod. The new bill is designed to simplify and update India’s taxation system, replacing legislation that had been in effect for over 60 years. It includes a revised structure, provisions for digital taxation, systems for resolving disputes, and initiatives to expand tax collection through technological and data-driven methods. While presenting The Income-Tax (No.2) Bill, 2025, Sitharaman explained that this legislation aims to streamline and update income tax regulations, replacing the existing Income Tax Act, 1961. The new version, which includes the majority of 285 recommendations made by the Parliamentary Select Committee led by BJP MP Baijayant Panda, was presented on Monday and passed promptly.

The Parliamentary Select Committee, comprising 31 members, presented their comprehensive 4,575-page findings last month. The recommendations of the committee include both small adjustments and 32 significant modifications.

New Income Tax Bill 2025 gets Lok Sabha nod, includes parliamentary panel’s most suggestions

new-income-tax-bill-2025

New Income Tax Bill 2025, News on New Income Tax Bill 2025, stories on New Income Tax Bill 2025, articles on New Income Tax Bill 2025, New Income Tax Bill 2025 stories at Wion, New Income Tax Bill 2025 news, New Income Tax Bill 2025 latest news

new income-tax-bill-2025

New Income Tax Bill 2025 gets Lok Sabha nod, includes parliamentary panel’s most suggestions