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  • Lok Sabha Passes Two Tax Bills Without Debate Amid Uproar...

Lok Sabha Passes Two Tax Bills Without Debate Amid Uproar

Just hours after being introduced by Finance Minister Nirmala Sitharaman in the House, the Lok Sabha on Monday passed the Income Tax (No.2) Bill, 2025.

  • By Yati Gupta
  • - Aug 11, 2025 06:58 PM
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Lok Sabha Passes Two Tax Bills Without Debate Amid Uproar

Without discussion, just hours after being introduced by Finance Minister Nirmala Sitharaman in the House, the Lok Sabha on Monday passed the Income Tax (No.2) Bill, 2025. The shift was made in the background of continued protest by the opposition on holding a debate on Special Intensive Revision (SIR) of electoral rolls in Bihar.

Monday afternoon, the bill, replacing the decades-old Income-tax Act, 1961, also takes into account almost all the suggestions of the Select Committee that went through the legislation point by point. It came following the withdrawal of the earlier version of the Income Tax Bill, 2025 last Friday by the government.

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Earlier budget 2024 July, had announced that an overhaul of the 1961 Act would be done comprehensively and within a time bound approach and in a manner which would make it shorter, clearer and easier to interpret. The stakeholder suggestions are also incorporated in the revised draft so that the legal provisions become more specific. What is changed is drafting corrections, phrase alignment, and cross-referencing in order to be more clear.

On February 13, 2025, the original bill was referred to the Select Committee which reported on July 21. The government heeded its suggestions, hence it resolved to offer this amended bill instead of the previous one.

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The officials mentioned that the law enacted in 1961 had been saddled with 40 years of amendments and it had become complicated, it had raised the burden of compliance and it decreased the efficiency of administration. Inло stern in the Statement of Objects and Reasons of the bill, taxpayers, practitioners as well as administrators are raising the culpable nature of the law due to its clunky provisions.

The opposition has been insisting on discussing the Bihar electoral rolls issue but since the monsoon session started both houses of parliament have seen repeated adjournment, but the Lok Sabha passed the bill without any debate.

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