Finance Minister Nirmala Sitharaman on Monday introduced the revised Income-Tax (No. 2) Bill, 2025, in the Lok Sabha, replacing the decades-old Income Tax Act, 1961. The updated bill comes after the government accepted “almost all” recommendations of the Select Committee chaired by Baijayant Panda, along with additional suggestions from stakeholders to ensure the legal provisions are more precise.
The original Income-Tax Bill, 2025, was introduced in the Lok Sabha on February 13, but has now been withdrawn to make way for the modified version. According to the statement of objects and reasons, the changes include corrections in drafting, alignment of phrases, consequential amendments, and cross-referencing to improve clarity and coherence.
Sitharaman said the revised legislation consolidates and amends the existing law on income tax, reflecting both the Select Committee’s proposals and feedback from various stakeholders to strengthen the bill’s legal framework.
