Finance Minister Nirmala Sitharaman Tables New Income Tax Bill In Lok Sabha

Finance Minister Nirmala Sitharaman on Monday, August 11, 2025, introduced a revised version of the Income TaxTaxTax Bill in the Lok Sabha, incorporating most of the recommendations made by the Select Committee headed by Baijayant Panda.

The government last week withdrew the Income-Tax Bill, 2025—originally tabled on February 13 to replace the six-decade-old Income-Tax Act, 1961—and introduced a revised draft on August 11. The updated version consolidates all proposed amendments into a single, coherent document.

Explaining the move in Parliament, Finance Minister Nirmala Sitharaman said the withdrawal was necessary to incorporate suggestions, correct drafting issues, align phrasing, and update cross-references. She added that the fresh draft will serve as the foundation for replacing the 1961 Act, helping avoid confusion.