Nirmala Sitharaman to Table Revised Income Tax Bill 2025 in Lok Sabha Today

Finance Minister Nirmala Sitharaman is scheduled to introduce a revised Income Tax Bill 2025 in the Lok Sabha, which would incorporate 285 recommendations from a Select Committee. This new legislation intends to simplify tax processes and correct earlier shortcomings, with the potential to reshape India's income tax regime.

Union Finance Minister Nirmala Sitharaman will present the revised new Income Tax Bill, 2025, as approved by a Select Committee in the Lok Sabha today, August 11.

Sitharaman removed the prior version of the Income Tax Bill, 2025, from the Lok Sabha last week. The Income Tax Act of 1961 was superseded by the Bill, which was introduced in the Lower House of Parliament on February 13 this year.

Sitharaman withdrew the Bill moments before the House adjourned on Friday, after Finance Minister Krishna Prasad Tenneti asked the Chair to motion for leave to do so.

After withdrawing the Bill, the administration stated that a new version would be released with the requested revisions.

Why was the income tax bill withdrawn?

The Bill was withdrawn to eliminate confusion caused by several versions of the Bill and to give a clear and updated version that includes all modifications.

"It is presumed that there will be an entirely new bill, ignoring the previous bill for which a lot of work was done, and that all of the work and time spent will be reduced," Parliamentary Affairs Minister Kiren Rijiju said on Saturday.

The minister defined that the concerns were unfounded, as the new law to be tabled will include all of the revisions proposed by the Select Committee and adopted by the Management.

The Lok Sabha Select Committee, chaired by BJP member Baijayant Panda, proposed 285 improvements to the Income Tax Bill, which the

government approved.

Rijiju stated that the need for a new measure emerged because introducing each modification and seeking House approval individually would have been time-consuming.

What modifications have been made to the amended Income Tax Bill?

The amended law contains the majority of the select committee's recommendations, which studied the Income Tax law 2025 and issued its findings on July 21.

These revisions are intended to streamline the text of the draft legislation. Other suggestions were submitted and must be considered. The changes mostly concern writing, phrase alignment, consequential alterations, and cross-referencing.

The panel has proposed the following top changes:

1. Tax refunds: The provision that prevents income tax refunds for returns filed beyond the due date has been deleted. Previously, the bill required that anybody requesting a refund file an ITR by the due date.