New Income Tax Bill 2025: Union Finance Minister Nirmala Sitharaman will introduce the revised Income Tax Bill in Lok Sabha today. It will replace the original draft offered on 13 February 2025. This bill was brought to remove the old Income Tax Act running since 1961.

The government had said that by withdrawing the bill, some improvement will be made so that the new law is easy for everyone to understand. The new bill includes the suggested changes of the Lok Sabha’s Selection Committee. This new updated bill will be a completely new and final version. With this, now people will not have any confusion between the old and new bills.

The first bill was not ignored: Kiren Rijiju

The Finance Minister had said that some technical corrections have been done in the new bill. Drafting has been improved, easy words have been selected and include better cross-referenceing. A major reason for this change is the feedback received by the Selection Committee of the Parliament led by BJP MP Baijayant Panda.

Here, on Friday, the statement of Union Parliamentary Minister Kiren Rijiju came to light amid criticisms to withdraw the new Income Tax Bill from the Lok Sabha. There was a lot of concerns over the withdrawal of the bill, especially on social media. Giving clarification on this, the minister said, it is believed that a completely new bill will be brought, ignoring the earlier bill, on which a lot of work was done. That is, all the work done and spent has gone waste.

Hard work did not go in vain: Rijiju

He further said, “This is a common tradition. When the selection committee presents its report, many improvements are made in it and the government accepts them. The first bill is withdrawn and a new bill is introduced with changes so that it is easy for Parliament to consider the bill and it is also easy to pass. He said that the hard work done in the last six months will not go in vain, but the new bill will give a glimpse of everyone’s hard work and suggestion.

Some special recommendations of the selection committee

• After filing late ITR, allowing taxpayers to refund without any penalty.
• Order to consider tax authorities to issue notice and consider the reply before initiating action.
• Trusts working for both religious and charitable purposes should be given a complete tax on secret donations.
• Apart from this, a modern, digital first and faceless assessment system has also been proposed in the new bill to make it easy to comply with tax related rules and curb corruption.

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What is going to change in New Income Tax Bill 2025, Selection Committee gave these 10 suggestions

New Income Tax Bill 2025: The New Income Tax Bill 2025 will be introduced in Parliament on Monday, August 11, on behalf of the central government. On Friday, Finance Minister Nirmala Sitharaman proposed to withdraw the new Income Tax Bill, 2025 amidst the uproar by opposition members. The House approved it to withdraw it. The Parliamentary Committee headed by BJP MP Baijayant Panda suggested several changes in this bill. Let us give you information about these 10 suggestions suggested by the committee:-

1. The parliamentary panel report on the new income tax bill was introduced in the Lok Sabha on 21 July. The 31 -member selection committee suggested further tightening of the definance, removing ambiguities and alliance with the existing framework.
2. After a long discussion, the committee suggested to make tax regime easier and clear the rules related to income tax.
3. The committee also suggested several corrections based on the suggestions of the stakeholders, which will help in bringing more clarity in the new bill and making it understandable.
4. Overall, the parliamentary panel has given a total of 566 suggestions/recommendations in its 4,584 page report.
5. The Selection Committee has suggested the removal of a rule related to the income tax refund, which mentions not to give refunds for late ITR.
6. The committee has also suggested to make changes in section 80M (Claus 148 of the new bill), which is related to deduction on inter-corporate dividend for companies availing special tax rates under Section 115BAA.
7. In its report on the New Income Tax Bill, the committee has also talked about giving permission to the taxpayers to get zero TDS certificate.
8. The committee has not recommended any change regarding tax rate in the report. Whereas in media reports, LTCG tax rate is being mentioned for some taxpayers, which has been rejected by income tax deposit.
9. The committee suggests that the defense of micro and small enterprises should be done according to the MSME Act.
10. The report suggested some changes to bring advanced ruling fees, TDS on Providend Fund, Low-tax Certificate and Clarity on Penalty Powers.

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