Income Tax Bill 2025 Withdrawn; Revised Version to Be Tabled on August 11

(OT Webdesk)In a significant legislative move, the central government has formally withdrawn the Income Tax Bill, 2025, which was introduced earlier this year to replace the outdated Income Tax Act of 1961.

The decision follows confusion stemming from multiple versions of the bill.

A revised draft is scheduled to be presented in the Lok Sabha on August 11, 2025, incorporating recommendations from the Select Committee chaired by BJP MP Baijayant Panda.

The new bill aims to simplify compliance, reduce litigation, and modernise India’s tax framework.

Key changes include replacing terms like “assessment year” and “previous year” with “tax year,” maintaining existing short-term capital gains tax rates, clarifying ESOP treatment, and integrating judicial precedents from the past six decades.

The streamlined structure will feature 23 chapters and 536 clauses.

Finance Minister Nirmala Sitharaman emphasised that the bill reflects the philosophy of Nyaya as enshrined in the Bharatiya Nyaya Sanhita, promising a more transparent and trust-based tax system.

The revised legislation is expected to come into effect from April 1, 2026.