New Delhi: The Lok Sabha on Monday passed the Income Tax (No. 2) Bill, 2025, without any debate, just hours after it was introduced by Finance Minister Nirmala Sitharaman. The bill replaces the Income-tax Act, 1961, aiming to simplify tax laws and reduce compliance burdens.
The legislation incorporates nearly all recommendations from the 31-member Select Committee, led by BJP MP Baijayant Panda, which examined the earlier version of the bill. The panel’s 4,584-page report included 566 suggestions, ranging from tightening definitions and removing ambiguities to aligning provisions with existing legal frameworks.
The government had initially introduced the Income Tax Bill, 2025, on February 13, but withdrew it last week to make revisions based on the committee’s findings and stakeholder feedback. The revised bill addresses drafting corrections, phrase alignments, and cross-referencing issues to ensure more accurate legal interpretation.
Key recommendations adopted in the new bill include provisions for refund eligibility even in cases of delayed return filing, alignment of micro and small enterprise definitions with the MSME Act, and clarifications for non-profit organisations on income classification, donations, and deemed application rules. It also provides clearer guidelines on advance ruling fees, TDS on provident funds, low-tax certificates, and penalty powers.
Despite the bill’s significance, it was passed without debate due to persistent opposition protests demanding a discussion on the Special Intensive Revision (SIR) of electoral rolls in Bihar. Both the Lok Sabha and Rajya Sabha have faced repeated disruptions since the start of the monsoon session over this demand.
The Lok Sabha also cleared the Taxation Laws (Amendment) Bill, 2025, without debate during the same session.
