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India Withdraws Income Tax Bill to Table Consolidated Version on August 11

The government has approved a fresh draft integrating nearly all select committee recommendations into one simplified text.

Officials said the withdrawal was aimed at avoiding confusion caused by multiple versions of the income tax bill.
Sitharaman withdrew the Bill just before the House was adjourned.
New Income Tax Rules
File photo of Union Finance Minister Nirmala Sitharaman in the Lok Sabha | PTI

Overview

  • Finance Minister Nirmala Sitharaman withdrew the original Income Tax Bill, 2025, in the Lok Sabha after the select committee submitted its 4,584-page report on August 8.
  • The Cabinet endorsed a unified draft that incorporates 285 recommendations from the 31-member committee and will present it in Parliament on August 11.
  • The revised bill is designed to replace the six-decade-old Income Tax Act with a plain-language code to cut litigation and clarify procedural norms.
  • Accepted committee proposals include continued exemption for anonymous donations to religious-cum-charitable trusts and penalty-free late TDS refund claims.
  • The draft also raises the Section 87A rebate threshold to ₹12 lakh and expands faceless, digital assessment mechanisms to ease taxpayer compliance.