Govt to table new version of Income Tax Bill, 2025, in Lok Sabha with Select Committee recommendations
ADVERTISEMENT
The finance ministry will table a new version of the Income Tax Bill, 2025, in Lok Sabha on Monday, August 11. The new version will incorporate the recommendations the Select Committee of Parliament.
"The Income-Tax Bill, 2025, which was introduced in the Lok Sabha on 13th February 2025 to replace the existing Income-Tax Act, 1961, has been formally withdrawn," sources said.
"A new version of the Income Tax Bill, incorporating most of the recommendations made by the Select Committee chaired by Baijayant Panda, will be introduced on Monday, August 11," tthe sources added.
The move is aimed at avoiding confusion due to multiple versions of the Bill. Sources said 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.
August 2025
As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.
The Select Committee of Parliament, led by BJP leader Baijayant Panda, tabled its report on the Income Tax Bill, 2025 on the first day of the ongoing monsoon session of Parliament. The Committee, comprising 31 members of the Lok Sabha, was tasked with examining the Bill.
As announced in Budget 2025, Finance Minister Nirmala Sitharaman tabled the Income Tax Bill, 2025, in the Lok Sabha on February 13. The Bill aims at simplifying the income tax law, repealing the Income Tax Act, 1961. The new act will come into force from April 1, 2026.
The committee has made recommendations pertaining to the definition of capital asset, definition of infrastructure capital company, deductions from income from house property, deductions allowed on actual payment basis only, expenditure on scientific research, definitions of “micro” and “small” enterprises, consideration received from transfer of capital asset, deduction in respect of employer contribution to pension scheme of central government, among others. These are among the 31 major recommendations made by the panel. The panel has made a total of 285 suggestions to simplify the bill further.
Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.