Sweeping Reforms Mark Passage of New Income Tax Bill in Lok Sabha Amid Uproar

In a controversial session marked by opposition protests, the Lok Sabha successfully passed the Income Tax (No. 2) Bill, 2025. This bill introduces notable changes, including the flexibility for refund claims in delayed filings and a reduction in the timeframe for TDS correction statements from six to two years.

Finance Minister Nirmala Sitharaman presented the revised bill following its withdrawal last Friday. It incorporates comprehensive reforms, aligning closely with the Select Committee's suggestions. The revamped bill promises to simplify the existing tax regime, eliminating complex provisions while incorporating suggestions from various stakeholders.

Key provisions include new deductions for companies under the revised tax regime, separation of MAT and AMT rules, and specific allowances for non-corporates. Efforts to enhance tax administration efficiency, like pre-filled returns and central processing, are also highlighted. Despite the protests, the government asserts these changes will modernize and streamline tax legislation.

(With inputs from agencies.)