New Income-Tax Bill 2025: Why has Centre withdrawn the bill from Lok Sabha? Revised draft to reflect parliament panel suggestions

The Union authorities has formally withdrawn the Income-Tax Bill, 2025, which was launched in the Lok Sabha on February 13 to substitute the present Income-Tax Act, 1961,.A contemporary model of the Bill, incorporating most of the suggestions made by the Select Committee chaired by BJP MP Baijayant Panda, is scheduled to be tabled in the Lok Sabha on Monday, August 11.According to officers conversant in the matter, the withdrawal goals to keep away from confusion arising from a number of variations of the Bill. “The new draft will reflect all changes in a consolidated manner and will be placed before the House for consideration,” one among the sources advised ET.What Union minister Nirmala Sitharaman statedExpalining cause for withdrawl of the bill, Finanace Minister Nirmala Sitharaman stated “The Government had introduced the Income-tax Bill, 2025 in the Lok Sabha on 13th of February, 2025 and on the same date it was referred to the Select Committee for examination. The Select Committee has laid its report in the Lok Sabha on the 21st of July, 2025. Almost all of the recommendations of the Select Committee have been accepted by the Government. Suggestions have also been received from other sources which are required to be incorporated to convey the correct legislative meaning.” “There are corrections in the nature of drafting, alignment of phrases, consequential changes and cross-referencing. Therefore, a decision has been taken by the Government to withdraw the Income-tax Bill, 2025 as reported by the Select Committee. A fresh Bill would be introduced in the Lok Sabha in due course which would replace the Income-tax Act, 1961.” she acknowledged. The earlier draft, launched throughout the Budget Session, was a part of the authorities’s broader plan to modernise and simplify direct tax legal guidelines. The revised Bill is predicted to protect the core construction however will embrace a number of technical and procedural modifications advisable by the parliamentary panel.