NEW DELHI: On Monday, Finance Minister Nirmala Sitharaman introduced the revised Income Tax Bill in the Lok Sabha, incorporating nearly all the recommendations made by the Select Committee.
Presenting the Income-Tax (No. 2) Bill, 2025, Sitharaman explained that the legislation aims to consolidate and amend existing income tax laws, effectively replacing the Income Tax Act of 1961.
The bill’s statement of objects and reasons noted, “The government has accepted almost all the Select Committee’s recommendations. Additionally, feedback from stakeholders has been considered to ensure the proposed legal language is more precise.”
The Select Committee, chaired by Baijayant Panda, had proposed several amendments to the original Income Tax Bill, 2025, which was first introduced in the Lok Sabha on February 13.
The statement further clarified, “The changes include drafting corrections, phrase alignment, consequential amendments, and cross-referencing updates. Therefore, the government decided to withdraw the Income Tax Bill, 2025, as reported by the Select Committee, and replace it with the Income-Tax (No. 2) Bill, 2025.”
