Govt Withdraws Income Tax Bill 2025, New Version on Aug. 11

Aug 8, 2025 - The Income Tax Bill, 2025, which was introduced in the Lok Sabha in February this year, was officially withdrawn by Finance Minister Nirmala Sitharaman, today, August 8. The Bill was meant to replace the existing Income Tax Act 1961 and aimed to revamp and simplify the current Income Tax structure. However, it reportedly faced pushback over implementation challenges and lack of consensus among stakeholders.

The government has indicated that a revised draft may be considered after further consultations.

A new version is likely to be placed before the Parliament on August 11, 2025, with inclusion of most of the recommendations made by the Select Committee which was headed by BJP MP Baijayant Panda. The Bill had been sent to the Committee for scrutiny after being introduced in the Lok Sabha.

According to sources, “To avoid confusion by multiple versions of the Bill and to provide a clear and updated version with all changes incorporated, the new version of the Income Tax Bill will be introduced for the consideration of the House on Monday.”