Government of India has decided to withdraw the Income-tax Bill, 2025, which was introduced in the Lok Sabha on February 13, 2025. Following its introduction, the bill was referred to a Select Committee for review, and the committee submitted its report on July 21, 2025. The government accepted most of the committee’s recommendations, but also received additional suggestions from other sources that need to be incorporated. The decision to withdraw the current bill was made to address drafting errors, ensure proper alignment of phrases, and make necessary consequential and cross-referencing changes. A new, revised bill will be introduced in the Lok Sabha at a later date, which will replace the existing Income-tax Act of 1961. This move aims to present a more accurately drafted and comprehensive legislative document.
Nirmala Sitharaman
Minister of Finance and Corporate Affairs
Government of India
WITHDRAWAL OF “THE INCOME-TAX BILL, 2025” as reported by the Select Committee
Reasons for withdrawal
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.
(Nirmala Sitharaman)
New Delhi:
Date: 08/08/2025
