Government Withdraws Income-Tax Bill 2025 for Revisions

The Union government has officially withdrawn the Income-Tax Bill, 2025, initially introduced in the Lok Sabha on February 13, aiming to replace the longstanding Income-Tax Act of 1961. This move comes as part of a broader initiative to modernize and simplify direct tax laws.

Revised Bill to Incorporate Parliamentary Panel Suggestions

A fresh version of the Bill, incorporating the majority of recommendations from the Select Committee led by BJP MP Baijayant Panda, is set to be presented in the Lok Sabha on Monday, August 11. The withdrawal aims to consolidate changes and avoid confusion from multiple versions of the Bill.

Finance Minister Nirmala Sitharaman's Statement

Finance Minister Nirmala Sitharaman explained the withdrawal was necessary to incorporate drafting corrections, align phrases, and make consequential changes. "A fresh Bill would be introduced in the Lok Sabha in due course which would replace the Income-tax Act, 1961," she stated.

Key Recommendations and Exemptions

The Select Committee's recommendations include continuing tax exemptions for anonymous donations to religious-cum-charitable trusts and allowing taxpayers to claim TDS refunds post the due date without penalties. The revised Bill exempts purely religious trusts from taxes on anonymous donations but taxes those also engaged in charitable activities.