The Indian government has pulled back its much-anticipated Income-Tax Bill, 2025, from the Lok Sabha, just months after it was introduced to replace the decades-old Income-Tax Act, 1961.
The bill, first tabled on February 13, was sent to a Select Committee chaired by Shri Baijayant Panda, which submitted its report on July 21. Finance Minister Nirmala Sitharaman confirmed that almost all recommendations from the committee have been accepted. Additional feedback from other sources will also be incorporated to fix drafting issues, align terminology, and ensure proper legislative clarity.
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According to the Finance Ministry, the withdrawal is meant to avoid confusion from having multiple versions and to ensure Parliament debates a single, fully updated draft. The revised bill is set to be reintroduced on Monday, August 11, 2025.
Once passed, the updated legislation will replace the Income-Tax Act, 1961, which has governed India’s direct taxation for over six decades.
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