New Delhi, August 11: The Lok Sabha on Monday passed the Income Tax (No. 2) Bill, 2025, without any discussion, just hours after Finance Minister Nirmala Sitharaman introduced it in the House. The move came against the backdrop of persistent opposition protests demanding a debate on the Special Intensive Revision (SIR) of electoral rolls in Bihar.
The bill, tabled on Monday afternoon, replaces the decades-old Income-tax Act, 1961, and incorporates nearly all the recommendations of the Select Committee that reviewed the legislation. It was introduced after the government withdrew the earlier version of the Income Tax Bill, 2025, last Friday.
The government had announced in the July 2024 budget that a comprehensive, time-bound overhaul of the 1961 Act would be undertaken to make it shorter, clearer, and easier to interpret. The revised draft also integrates suggestions from stakeholders to ensure the legal provisions are more precise. Changes include corrections in drafting, phrase alignment, and cross-referencing for better clarity.
The Select Committee, to which the original bill was referred on February 13, 2025, submitted its report on July 21. Following its recommendations, the government decided to withdraw the earlier bill and present this amended version.
Officials noted that the 1961 law had been burdened by decades of amendments, making its structure complex, increasing compliance requirements, and reducing administrative efficiency. The bill’s Statement of Objects and Reasons highlights concerns from taxpayers, practitioners, and administrators about the law’s cumbersome provisions.
Both Houses of Parliament have faced repeated adjournments since the monsoon session began due to the opposition’s insistence on debating the Bihar electoral rolls issue, but the government pushed the bill through in the Lok Sabha without discussion.
