New Income Tax Bill: Finance Minister Nirmala Sitharaman has introduced the New Income Tax Bill 2025 in Parliament today on Monday, 11 August 2025. It includes most of the recommendations of the Select Committee headed by Baijayant Panda.
New Income Tax Bill : Finance Minister Nirmala Sitharaman has introduced the New Income Tax Bill 2025 in Parliament today on Monday, 11 August 2025. Finance Minister Nirmala Sitharaman introduced a revised version of the Income Tax Bill in the Lok Sabha, which includes most of the recommendations of the Select Committee headed by Baijayant Panda. Sitharaman introduced the Income Tax (No. 2) Bill, 2025, which provides for amendment and strengthening of the law related to income tax. She also introduced the Taxation Act (Amendment) Bill, 2025 in the House.
Let us tell you that many new changes have been made in this bill, which will also affect the common taxpayers. Let us tell you that its main features include – simple language, consolidation deduction and smaller provisions to make compliance easier. Lower penalties for some offenses to make the system more friendly to taxpayers.
What is the detail
The objects and reasons of the bill state, ‘Almost all the recommendations of the Select Committee have been accepted by the government. In addition, suggestions have been received from stakeholders about such changes that will more accurately express the proposed legal meaning.’ Let us tell you that the government introduced the Income Tax Bill, 2025 in the Lok Sabha on February 13. The Select Committee headed by Bharatiya Janata Party (BJP) MP Baijayant Panda had recommended some changes in it. The said bill was withdrawn in the House on Friday. The bill states, ‘Improvements have been made in the nature of the draft, alignment of phrases, consequential changes and cross-references. Therefore, the government decided to withdraw the Income Tax Bill, 2025 as per the report of the Select Committee. As a result, the Income Tax (No. 2) Bill, 2025 has been prepared to replace the Income Tax Act, 1961.’
Benefit for taxpayers
Let us tell you that the committee has also recommended improvements in some other rules related to income tax. These are as follows-
Relaxation in ITR requirement: Now it will not be necessary to file full ITR for refund of only TDS (tax deducted at source). Instead, it is proposed to fill a simple form.
Refund even on late filing of return: According to the first proposal, refund was not given on filing return after a fixed time limit. The committee has recommended a change in this so that those who file returns late can also get refund.
Zero TDS Certificate: Taxpayers will get the facility that they will be able to get a certificate of zero TDS even before the tax is deducted, due to which tax will not be deducted on their income.
Know, who will get the benefit?
- Let us tell you that if the proposal becomes a law, then the following people will also get the benefit of tax exemption on lump sum pension withdrawal…
- Self-employed professionals: Such as doctors, lawyers, artists or freelancers who have invested in a recognized pension fund themselves.
- Private sector employees whose company does not have any pension scheme, but they themselves have invested money in an approved pension scheme.
- Legal heir or nominee: If the pension account holder dies, then his dependents or nominee will also get exemption on the lump sum amount received.
- Beneficiaries of pension linked to group insurance: Those who are not direct employees of any organization, but take benefit from its approved pension fund.
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