Modi Government Withdraws Income Tax Bill 2025 From Parliament, New Bill Likely To Be Tabled On 11 August

In a significant development, the central government has formally withdrawn the Income Tax Bill, 2025, from the Lok Sabha, paving the way for a revised version to be tabled on 11 August.

The bill was withdrawn by Finance Minister Nirmala Sitharaman.

The withdrawal stems from recommendations by a Parliamentary Select Committee chaired by BJP MP Baijayant Panda.

The government is reportedly planning to incorporate the changes suggested by the Select Committee.

The original bill, introduced on 13 February 2025, aimed to replace the archaic Income Tax Act of 1961 with a modern framework featuring simpler language, reduced penalties, and a taxpayer-friendly approach while preserving existing tax rates and structures.

An updated version of the Income Tax Bill will likely include most of the recommendations suggested by the Select Committee, news agency PTI said quoting official sources.

“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 Monday,” sources said, according to PTI.

The Select Committee has 31 members and is chaired by BJP leader Baijayant Panda.

It has reportedly suggested multiple changes to the legislation, including favouring continuing the tax exemption on anonymous donations made to religious-cum-charitable trusts in the new law, besides batting for taxpayers to be allowed to claim TDS refund even after the ITR filing due date without paying any penal charges.

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