New Delhi, Aug 12: The Lok Sabha on Monday passed two key tax-related legislations – the revised Income-Tax (No. 2) Bill, 2025 and the Taxation Laws (Amendment) Bill – without any debate, using a voice vote mechanism. The passage came amid strong protests from Opposition MPs over unrelated issues, which prevented any floor discussion on the proposed laws.Earlier in the day, Union Finance Minister Nirmala Sitharaman reintroduced the Income-Tax (No. 2) Bill, 2025, which seeks to replace the decades-old Income Tax Act, 1961 with a consolidated and updated tax framework. The Bill was originally introduced during the Budget session in February and immediately referred to the Select Committee of the Lok Sabha for review.
The earlier version of the Income Tax Bill, tabled on August 8, was formally withdrawn to incorporate “almost all” recommendations of the Select Committee. In addition, the Finance Ministry considered inputs from various stakeholders to refine the legal language and improve clarity in the drafting.
“Almost all of the recommendations of the Select Committee have been accepted by the government. In addition, suggestions have been received from stakeholders about changes that would convey the proposed legal meaning more accurately,” the statement of objects and reasons accompanying the Bill said.
According to the government, the revised Bill contains corrections in drafting, alignment of phrases, consequential changes, and cross-referencing to ensure legal precision. These refinements, it said, justified the withdrawal of the earlier draft and introduction of the fresh Income-Tax (No. 2) Bill, 2025.
The Finance Minister emphasised that the proposed law aims to modernise and consolidate income tax provisions to suit the current economic environment, simplifying compliance and ensuring alignment with evolving fiscal policies.
Alongside the new Income Tax Bill, the Lok Sabha also passed the Taxation Laws (Amendment) Bill, which grants tax exemptions to subscribers of the Unified Pension Scheme. This measure is aimed at encouraging participation in the new pension framework by offering direct tax relief to contributors.
Both Bills were passed in quick succession through a voice vote, with no clause-by-clause discussion, owing to continuous Opposition protests in the House. The Bills will now move to the Rajya Sabha for consideration.
If cleared by both Houses and notified, the Income-Tax (No. 2) Act, 2025 will mark the most significant overhaul of India’s direct tax framework in over six decades, potentially reshaping how individuals and businesses assess and pay income tax in the country.