Revamping the Tax Landscape: The New Income-Tax Bill 2025 Unveiled
Finance Minister Nirmala Sitharaman introduced a revised Income Tax bill in the Lok Sabha, incorporating recommendations from the Select Committee. The bill aims to consolidate and amend the existing income-tax laws. It addresses drafting, phrase alignment, and cross-referencing issues to replace the Income Tax Act of 1961.
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- India
On Monday, Finance Minister Nirmala Sitharaman presented the revamped Income Tax bill in the Lok Sabha, emphasizing the government's responsiveness to the Select Committee's feedback. This revised legislation, known as The Income-Tax (No.2) Bill, 2025, intends to unify and update the income-tax legal framework, supplanting the older provisions of the 1961 Act.
The statement of objects and reasons for the new bill highlighted the significant acceptance of the Committee's suggestions. It acknowledged that stakeholder input further refined the bill's precision in articulating legal intent, reflecting a comprehensive reform effort.
Chaired by Baijayant Panda, the Select Committee had initially tabled various amendments when the Income-tax Bill, 2025 was first introduced in February. The government has opted to withdraw the older version, replacing it with a revised bill that aligns terms, corrects language, and ensures coherent cross-referencing for clarity and efficacy.
(With inputs from agencies.)
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