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The Indian government has withdrawn Income-Tax Bill, 2025, which was introduced in the Lok Sabha on 13 February to replace the six-decade-old Income-Tax Act, 1961.
A new version of the Income Tax Bill, incorporating most of the recommendations made by the Select Committee chaired by Shri Baijayant Panda, will be introduced on Monday, August 11.
To avoid confusion by multiple versions of the Bill and to provide a clear and updated version with all changes incorporated, the new version of the Income Tax Bill will be introduced for the consideration of the House on August 11.
Sharing reasons for the withdrawal in Parliament, Finance Minister Nirmala Sitharaman said, “Suggestions have been received which are required to be incorporated to convey the correct legislative meaning. There are corrections in the nature of drafting, alignment of phrases, consequential changes and cross-referencing.”
She added that, therefore, the government has withdrawn the Income-Tax Bill, 2025 and that a fresh Bill will be introduced in the Lok Sabha “in due course” to replace the Income-Tax Act, 1961.
In the old version of the bill, several drafting errors had been spotted by lawyers and chartered accountants, with the Lok Sabha Select Committee flagging some of them.
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