Nirmala Sitharaman to Present Revised Income Tax Bill 2025 in Lok Sabha — Key Changes for Taxpayers
- 11th August 2025
- 03:00:00 PM
- 2 min read
Mumbai | August 11 – Finance Minister Nirmala Sitharaman will introduce the revised Income Tax Bill 2025 in the Lok Sabha today. The bill incorporates 285 changes recommended by the Parliamentary Select Committee and is designed to replace the Income Tax Act, 1961.
The original draft, tabled on 13 February 2025, was withdrawn last week. The revised bill merges the earlier provisions with all committee-approved changes to avoid multiple versions. The Select Committee, chaired by BJP MP Baijayant Panda, submitted its report on 21 July 2025.
Key Provisions in the Revised Income Tax Bill 2025
- Tax Refunds: Removal of the restriction that denied refunds for returns filed after the due date. Under Section 433, refunds can now be claimed with late filings, provided statutory conditions are met.
- Inter-Corporate Dividends: Reinstatement of the Section 80M deduction for inter-corporate dividends for companies using the concessional 22% corporate tax rate under Section 115BAA.
- Nil TDS Certificates: Provision enabling taxpayers to obtain Nil TDS certificates to prevent excess deductions.
Procedural Changes
The new draft consolidates all accepted amendments from the Select Committee’s review, including language simplification, alignment of cross-references, and correction of drafting errors. These modifications were added to streamline compliance and ensure clarity in implementation.
Next Steps
The bill will be taken up for discussion and passage in the Lok Sabha, followed by consideration in the Rajya Sabha. Upon enactment, the legislation will replace the current six-decade-old income tax law and form the basis for India’s direct tax regime going forward.
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