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Aug 11, 2025: Finance Minister Nirmala Sitharaman on Monday introduced the modified Income Tax bill in the Lok Sabha after including “almost all of the recommendations of the Select Committee.”
Introducing The Income-Tax (No.2) Bill, 2025, Sitharaman said the bill seeks to consolidate and amend the law relating to income-tax and will replace the Income Tax Act, 1961.
“Almost all of the recommendations of the Select Committee have been accepted by the government. In addition, stakeholders have offered modifications that would more accurately convey the proposed legal meaning, according to the bill's statement of objects and reasons. The Income-tax Bill, 2025, which was presented in the Lok Sabha on February 13 had been suggested a number of modifications by the Select Committee, which was led by Baijayant Panda. “There are corrections in the nature of drafting, alignment of phrases, consequential changes and cross-referencing. Therefore, a decision has been taken by the government to withdraw the Income-tax Bill, 2025 as reported by the Select Committee. As a result, income tax (No. 2) The Income Tax Act of 1961 will be repealed by the Bill of 2025, according to the statement.