Government Withdraws Income Tax Bill, 2025; Fresh Draft to be Introduced

By A Staff Reporter

New Delhi: The Union Government has decided to withdraw the Income Tax Bill, 2025, which was introduced in the Lok Sabha earlier this year, citing the need to incorporate further suggestions to ensure clarity and accuracy in its legislative intent.

The Bill was tabled in the Lok Sabha on February 13, 2025, and referred the same day to a Select Committee for examination. The Committee submitted its report on July 21, 2025, with the Government accepting almost all of its recommendations. However, officials said that additional suggestions had since been received, which required integration into the draft to convey the correct legislative meaning.

As a result, the Government has opted to withdraw the version of the Bill reported by the Select Committee. A fresh Bill will be introduced in due course to replace the existing Income-tax Act, 1961, which has been in force for over six decades.