On Monday, the Central Government will introduce a fresh version of the Income Tax Bill in the Parliament on August 11. The new bill will incorporate the recommendations of the Select Committee of Parliament. This follows the withdrawal of the earlier version of the Income Tax Bill, 2025, which was introduced in February this year.
House Is Adjourned
The bill could have been introduced in Parliament on Friday itself, but disruptions led to the adjournment of the House before the presidential assent for withdrawal was received.
The Revised Bill
According to Financial Express, the revised bill received Cabinet approval last Friday. Finance Minister Nirmala Sitharaman then withdrew the earlier version, paving the way for an updated draft.
Multiple Drafts Confusing
According to government sources, multiple drafts were confusing, and they decided to introduce a single, updated version to tackle this issue. It ensured that all recent changes were incorporated.
In the new bill, the major recommendations which are incorporated are Tax Refunds
Inter-Corporate Dividends: Restoration of the section 80M deduction for companies availing the special rate under section 115BAA, which had been omitted in the earlier draft.
Nil TDS Certificates: Provision for taxpayers to apply for NIL TDS certificates, offering relief in cases where no tax deduction at source is warranted.
When Was The Income Tax Bill 2025 Tabled?
Tabled on 13 February, the Income Tax Bill, 2025, was to replace the six-decade-old Income Tax Act, 1961. The draft was referred to the Select Committee of the Lok Sabha, chaired by BJP MP Baijayant Panda, which examined the legislation and adopted its report last month.
According to the Financial Express, the committee made 285 recommendations focused on simplifying the structure and language of the tax code, without altering tax rates or major policies. These suggestions aim to modernise the legislation while preserving predictability for taxpayers.
