Updated Income Tax Bill likely to be Tabled at Lok Sabha Today
The Income Tax Bill, 2025, when passed, will be an overhaul of the country’s direct taxation framework.
incometax - bill - Taxscan
incometax - bill - Taxscan
The government on Friday withdrew the Income Tax Bill, 2025 from the Lok Sabha, announcing plans to present an updated draft on August 11. The revised version is expected to incorporate most recommendations from the 31-member Select Committee headed by BJP MP Baijayant Panda, according to official sources.
Finance Minister Nirmala Sitharaman, who had introduced the Bill on February 13 to replace the Income Tax Act of 1961, moved the withdrawal amid continuous disruptions in the House. Opposition MPs have been staging protests over the special intensive revision (SIR) of electoral rolls in Bihar, insisting on a debate for the 13th consecutive day.
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Officials clarified that the decision to withdraw and reintroduce the Bill was aimed at ensuring clarity. To prevent confusion from having multiple versions in circulation and to provide a comprehensive draft with all amendments included, the updated Income Tax Bill will be placed before the House on Monday as per sources.
The Select Committee’s report suggested retaining certain provisions and making notable changes to the original draft. One major recommendation was to continue offering tax exemptions on anonymous donations to trusts that are exclusively religious in nature. However, if a religious trust also engages in charitable activities such as operating hospitals or educational institutions, such donations would remain taxable under the proposed law.
Another significant recommendation allows taxpayers to claim refunds on tax deducted at source (TDS) even after the deadline for filing returns, without incurring penal charges.
Provisions allowing tax officials to access social media accounts and private email communications in the course of investigations remain part of the revised draft, as endorsed by the parliamentary panel.
How to Audit Public Charitable Trusts under the Income Tax Act Click Here
The withdrawal of the Bill came in the middle of a tumultuous sitting in the Lok Sabha, with Opposition benches raising slogans and demanding discussion on the Bihar electoral roll revision.
Parliamentary Affairs Minister Kiren Rijiju expressed frustration over the continued disruptions, noting that Friday’s session was intended for Private Members’ Bills. Despite appeals from the Treasury benches, the protests showed no sign of abating, ultimately forcing the House to adjourn for the day.
With the updated Bill to be introduced on Monday, the stage is set for another round of parliamentary debate, provided the House can overcome the persistent impasse.
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