Lok Sabha passes new Income Tax Bill without debate
What's the story
The Lok Sabha has passed the revised Income Tax (No. 2) Bill, 2025, and the Taxation Laws (Amendment) Bill, 2025. The bills were introduced by Finance Minister Nirmala Sitharaman and passed without any debate amid opposition protests over Bihar's electoral roll revision. The Income Tax (No. 2) Bill seeks to consolidate and amend the Income Tax Act of 1961, while the Taxation Laws Amendment Bill will amend the 1961 act and the Finance Act of 2025.
Bill revisions
Sitharaman accepted 'almost all' select committee recommendations
Sitharaman introduced the revised Income Tax bill after accepting "almost all of the recommendations" of a parliamentary Select Committee. The committee, headed by BJP MP Baijayant Panda, had suggested numerous changes to simplify and clarify tax legislation. These included removing provisions that deny income tax refunds for late ITR filings and allowing taxpayers to avail NIL TDS certificates in its report on the New Income Tax Bill.
Future proceedings
Suggestions focused on simplifying tax regime
The Select Committee had submitted a total of 566 suggestions in its report, including 285 focused on simplifying the tax regime. After the bills were passed, both Houses were adjourned for the day. To become law, the revised Income Tax Bill must be passed by Rajya Sabha and receive presidential assent.