The updated version of the I-T Bill, according to sources, will incorporate most of the recommendations of the Select Committee
New Delhi: Union Finance minister Nirmala Sitharaman is likely to table a new and the revised version of Income-Tax (I-T) Bill, 2025 on Monday, incorporating key changes recommended by a Select Committee led by Baijayant Panda. She has, however, withdrawn the old Income-Tax Bill, 2025, just months after its introduction in Parliament, a source privy to development said on Friday.
The finance minister, however, confirmed in a statement that a fresh bill would be introduced in Lok Sabha in due course which would replace the Income Tax Act 1961. The original bill, introduced on February 13 this year during the budget session of Parliament, was aimed to overhaul the Income Tax Act 1961, by cutting legal clutter. “A new version of the I-T Bill will be introduced in the Lok Sabha on August 11 to avoid confusion of the bill and to provide a clear and updated version with all changes incorporated therein. With numerous amendments arising from committee reviews, the government has decided to withdraw the first draft to avoid confusion and present a consolidated version for debate,” the source said.
The select committee, chaired by Baijayant Panda, had suggested a host of changes in the I-T Bill, which was introduced in the Lok Sabha on February 13. The 31-member select committee had made some suggestions on the Bill. Soon after its introduction in the House, the Bill, which would replace the six-decade-old Income Tax Act, 1961, was referred to the select committee for scrutiny.
The members, however, favoured continuing tax exemption on anonymous donations made to religious-cum-charitable trusts in the new law, besides suggesting that taxpayers be allowed to claim TDS refund even after the ITR filing due date without paying any penal charges.
