Income Tax Bill 2025 Withdrawn; Revised Version To Be Tabled Monday
The Income Tax Bill, 2025—originally introduced in the Lok Sabha on February 13 to replace the decades-old Income Tax Act of 1961—has been officially withdrawn.
A revised version of the bill, reflecting key suggestions from the Parliamentary Select Committee led by BJP MP Baijayant Jay Panda, will be introduced in Parliament on Monday. Officials say the move aims to streamline the legislative process by avoiding confusion caused by multiple drafts and to present a comprehensive and updated version for consideration.
According to Mr Panda, the new legislation is designed to significantly simplify India’s complex tax framework, which has seen over 4,000 amendments and currently spans more than 5 lakh words. “The proposed law reduces the complexity by almost 50%, making it easier for ordinary taxpayers to understand,” Panda told IANS.
The revamped bill is expected to benefit small businesses and MSMEs in particular, by minimizing legal ambiguities and reducing the need for costly litigation. It is also designed to create a fairer, more equitable tax system without increasing the burden on the working and middle-class population.
Key changes include revised tax slabs and rates intended to boost disposable income, savings, and investments. As per the Finance Act, 2025, the income threshold for tax rebate under Section 87A—applicable under the new regime (Section 115BAC)—has been raised from ₹7 lakh to ₹12 lakh. Additionally, the maximum rebate amount has been increased from ₹25,000 to ₹60,000.
Marginal relief will also apply for incomes just above ₹12 lakh, helping taxpayers avoid sudden tax spikes. The government says the new bill will significantly ease the tax filing process for both individuals and small businesses.
News Source : Information for this article was gathered from a variety of reliable news outlets.
