Income Tax Bill 2025 Withdrawn by Centre, New Version Due August 11

Income Tax Bill 2025 Withdrawn by Centre: The Centre has withdrawn the Income-Tax Bill, 2025, just months after it was introduced in Parliament and will table a new version on Monday, August 11, with key changes recommended by a Select Committee led by Baijayant Panda, sources said.

The original Bill was introduced on February 13 to overhaul the Income Tax Act, 1961, by cutting legal clutter. But with numerous amendments emerging from committee reviews, the government decided to withdraw the first draft to avoid confusion and present a consolidated version for debate.

A new version of the Bill with most of the recommendations of the Select Committee chaired by BJP leader Baijayant Panda will be introduced on August 11. A new version of the Income Tax Bill will be introduced in the House on Monday to avoid confusion by multiple versions of the Bill and to provide an updated version with all changes.

ALso Read: ZIM vs NZ 2nd Test Day 2 Live: Conway, Nicholls Dominate Zimbabwe

According to Mr Panda, who headed the Parliamentary Select Committee that reviewed the legislation, the new law once passed will simplify India’s decades old tax structure, cut down legal confusion and help individual taxpayers and MSMEs avoid unnecessary litigation.

"The current Income Tax Act of 1961 has undergone more than 4,000 amendments and contains over 5 lakh words. It has become too complex. The new bill simplifies that by nearly 50 per cent -- making it far easier for ordinary taxpayers to read and understand," Mr Panda told news agency IANS.

Officials said the withdrawal was to avoid confusion caused by multiple versions of the legislation and to ensure that lawmakers have a single, consolidated draft with all proposed changes.

The new Income-Tax Bill will modernise India’s direct tax framework, simplify compliance and address several long pending issues in tax administration. The Select Committee had examined the earlier draft in detail before submitting its report with key suggestions.

ALso Read: Bengaluru Sees Rare Traffic-Free Roads on Varamahalakshmi Festival

Lok Sabha was adjourned for the day on Friday as opposition parties protested vociferously demanding discussion on revision of electoral rolls in Bihar.

Just before the House was adjourned, Finance Minister Nirmala Sitharaman withdrew the earlier 'Income-Tax Bill, 2025' as the Select Committee had submitted its report on it.

As the House met at 3 pm, Krishna Prasad Tenneti, who was in the Chair, asked Sitharaman to move for leave to withdraw the Bill. She then withdrew the Bill.

Parliamentary Affairs Minister Kiren Rijiju said it is unfortunate that opposition parties are wasting time when private member bills were to be taken up. He said opposition parties should not say that the government did not cooperate as the government has said from the beginning that it is willing to discuss all issues under rules.

ALso Read: PM Modi Has 19 Days to Avoid Trump’s 50% US Tariff Shock