Income tax bill 2025: The Central Government has withdrawn the Income Tax Bill 2025. The bill was introduced in the Lok Sabha in February this year. The bill was brought to Parliament on 13 February 2025 and on the same day it was sent to a select committee for investigation. The committee presented its report on July 21, in which most of the recommendations made by the government have accepted. Apart from this, some more suggestions have also come, which need to be included in the law better.
Center Withdraws Income Tax Bill, 2025 that was introduced in Lok Sabha in February.
The government has got into introduced the income-tax bill, 2025 in the Lok Sabha on 13th of February, 2025 and on the same date it was referred to the select comeittee for examination. The select… – ani (@ani) August 8, 2025
For this reason, the government has decided to withdraw the Income Tax Bill 2025 at present. Now a new bill will be introduced in the Lok Sabha at the appropriate time, which will replace the current Income Tax Act, 1961. According to the information, the central government can introduce the new Income Tax Bill in the House on August 11.
Why is the need for a new bill
The new income tax bill is part of the government’s improvement campaign on a large scale of the government. This means that the government wants to make the tax system easier, simplify the tax filling process and encourage people to invest. The government has clarified that the new law will be effective from 1 April 2026. This will have a direct impact on common taxpayers, corporates and investors. The number of words in the new Income Tax Bill is 2.6 lakhs, which is much lower than the 5.12 lakh words of the current Income Tax Act. It now has only 536 sections compared to 819 sections and the number of chapters has also been reduced from 47 to 23.