Govt Withdraws Income-Tax Bill, 2025; Revamped Version To Be Tabled On August 11: Report

The revised legislation has been significantly shaped by the inputs of the Select Committee chaired by Shri Baijayant Panda. The committee submitted its comprehensive report to Parliament on July 21

One of the major highlights includes clearer provisions around the 30 per cent standard deduction on house property income, ensuring that it is explicitly stated in the new law to reduce ambiguity

Source : ABPLIVE AI

The government has reportedly officially withdrawn the Income-Tax Bill, 2025, which was introduced in the Lok Sabha on February 13, 2025, as part of its ongoing efforts to replace the outdated Income-Tax Act of 1961. The move aims to streamline the legislative process and avoid confusion stemming from multiple versions of the bill in circulation.

A revamped and consolidated version of the bill, which incorporates a vast majority of the recommendations proposed by a Parliamentary Select Committee, is scheduled to be introduced on August 11 for further debate and approval, according to an India Today TV report citing sources.

Over 4,500 Pages Of Recommendations Shape The New Draft

The revised legislation has been significantly shaped by the inputs of the Select Committee chaired by Shri Baijayant Panda. The committee submitted its comprehensive report to Parliament on July 21, offering 285 suggestions spanning over 4,500 pages.

These recommendations aim to enhance clarity, simplify compliance, and introduce taxpayer-friendly provisions. Among the many proposals, several are expected to offer tangible benefits to everyday taxpayers, especially in areas related to house property income and refund processing.

Key Proposals

One of the major highlights includes clearer provisions around the 30 per cent standard deduction on house property income, ensuring that it is explicitly stated in the new law to reduce ambiguity. Another major recommendation is to extend home loan interest deductions to rented properties, not just self-occupied ones—bringing a wider section of property owners under the benefit net.

The Select Committee has also called for a simplified and accelerated refund mechanism for TDS and TCS. Many taxpayers currently face long wait times for these refunds, and the proposed system seeks to address that.

Additionally, the Central Board of Direct Taxes (CBDT) is also drafting new rules under its "Enforcement with Empathy" framework. This initiative is designed to reduce bureaucratic hurdles and make tax compliance smoother for honest taxpayers. These changes, if implemented effectively, could mark a major shift in how tax laws are administered in India.