The government will present a fresh version of the Income Tax Bill in Parliament on Monday, incorporating 285 recommendations made by the Select Committee of Parliament. The updated draft, approved by the cabinet on Friday, replaces the earlier I-T Bill 2025 introduced in February, which finance minister Nirmala Sitharaman formally withdrew.

Key Highlights

• New Income Tax Bill withdrawn; fresh version to be tabled Monday incorporating 285 Select Committee recommendations.
• Select Committee recommends fairness measures, including uniform pension taxation and time-bound tax litigation resolution.

The revised bill was initially planned for introduction on Friday but was deferred due to parliamentary disruptions before presidential assent arrived. According to officials, the move aims to avoid confusion from multiple versions and provide a single, updated draft for consideration.

The Select Committee, chaired by BJP’s Baijayant Panda, reviewed the bill last month and suggested changes to simplify and modernise India’s tax laws. The I-T Bill 2025 seeks to replace the 63-year-old Income Tax Act, 1961, without altering tax rates or major policies.

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CBDT chairman Ravi Agrawal said the law’s language and structure will be clearer, with formulae, tables, and consolidated provisions, making it easier for taxpayers to understand without heavy reliance on professionals.