On 8th August 2025, in a sudden move by the Finance Minister of India, Smt. Nirmala Sitharaman, has withdrawn the Income Tax Bill, 2025. The bill was introduced in the Lok Sabha on 13th February 2025 and on the same day, it was referred to the Select Committee for examination.
As per the letter, the Select Committee had given their recommendations on 21st July 2025 along with the recommendations of other stakeholders. The Government has readily accepted the recommendations of the Select Committee. There are corrections in the nature of drafting, alignment of phrases, consequential changes and cross-referencing. Therefore, the decision has been made to currently withdraw the Income Tax Bill 2025. A fresh bill will be introduced in the Lok Sabha in the due course of time which would replace the Income Tax Act, 1961.
Letter-withdrawal of Income Tax Bill 2025
