Govt ‘withdraws’ first version of Income Tax Bill, 2025, to ‘introduce’ new version

The Government of India on Friday withdrew the first version of the Income Tax (I-T) Bill, 2025, to avoid confusion from multiple versions, said sources. The first version of the I-T Bill, 2025, was introduced in Lok Sabha on Feb 13, 2025, to replace the I-T Act, 1961. 

As per reports, the new version of the I-T Bill will be introduced on August 11 (Monday, likely to be introduced for consideration in the House. The new version of the I-T Bill will provide a clear and updated version with all changes incorporated. 

Introduced by Finance Minister Nirmala Sitharaman on February 13, 2025, the Bill aimed to repeal and replace the lengthy Income‑Tax Act, 1961. It was referred to a Select Committee of the Lok Sabha, chaired by MP Baijayant Panda, to examine and report back by the first day of the next (Monsoon) session. 

Its key objective was to simplify and modernize the tax law by eliminating obsolete provisions, reducing complexity, and enhancing readability.