Sitharaman Tables Revised Income Tax Bill in Lok Sabha

Fast Summary

• Union Finance Minister Nirmala Sitharaman introduced the modified Income-Tax (No. 2) Bill, 2025 in Lok Sabha on August 11, during the Monsoon Session of Parliament.
• The bill seeks to consolidate and amend income tax law, replacing the Income Tax Act of 1961.
• The government has included “almost all” recommendations made by a Select Committee chaired by Baijayant Panda, as well as suggestions from stakeholders for improved clarity.
• Updates include corrections in drafting, alignment of phrases, consequential changes, and cross-referencing for legal accuracy.
• The earlier version of the Income-tax Bill introduced on February 13 was withdrawn to accommodate these modifications.

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indian Opinion Analysis
The introduction of the Income-Tax (No. 2) Bill signals an effort by the Indian government to modernize its tax laws and align them with contemporary needs while incorporating feedback from lawmakers and stakeholders. By addressing issues such as drafting inconsistencies and improving legal clarity through cross-referencing provisions, this step appears aimed at ensuring smoother implementation and reducing ambiguities in taxation processes.

Replacing a decades-old framework like the Income Tax Act of 1961 is a important move that could reflect India’s intent to simplify compliance and accommodate evolving economic realities. This holistic approach-including extensive inputs from both a parliamentary committee and public stakeholders-indicates an inclusive legislative process aligning with governance best practices.