New Delhi 11 August :- Finance Minister Nirmala Sitharaman introduced “The Income-Tax (No. 2) Bill, 2025” in the Lok Sabha on August 11, following the withdrawal of the earlier version on August 8.
The revised legislation incorporates recommendations from a 31-member Select Committee headed by BJP MP Baijayant Panda, which proposed 566 amendments to refine tax provisions, enhance clarity, and align the law with existing frameworks. The committee’s 4,584-page report, tabled on July 21, suggested critical changes, including easing refund restrictions for delayed ITR filings and harmonizing MSME definitions with the MSME Act.
It also sought clearer guidelines for non-profits regarding income classification, anonymous donations, and the removal of ambiguous “deemed application” clauses. Additionally, the panel recommended reforms in advance ruling fees, TDS on provident funds, and penalty structures. The revised bill aims to streamline the 1961 Income-tax Act, reducing litigation while maintaining taxpayer-friendly measures. The government’s move follows its 2024 Budget pledge to modernize tax laws for greater efficiency and transparency.
