Finance Minister introduced the revised Income Tax Bill in Lok Sabha, know the head of the Select Committee

By Cross Talk India Team Last updated Aug 11, 2025

Photo: PTI Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman introduced the revised Income Tax Bill, 2025 in the Lok Sabha on Monday. This revised bill includes most of the recommendations made by the Select Committee headed by Baijayant Panda. These steps have been taken by the government after the government’s decision to withdraw the Income Tax Bill, 2025 last week, which was introduced on 13 February. After the new Income Tax Bill is passed, the Act will be enacted, which will replace the Income Tax Act, 1961 nearly 6 decades.

Finance Minister gave this reply regarding February Bill

In Parliament, giving information about the withdrawal of the bill introduced on 13 February, Nirmala Sitharaman said, “Suggestions have been received for the new Income Tax Bill, which are necessary to include the correct legislative meaning. The nature of the formation, the alignment of phrases, the alignment of phrases, the resulting changes and interferences have been improved.” He further stated that the earlier bill was withdrawn to avoid confusion and this new draft would serve as the basis of changing the Income Tax Act of 1961.

Head recommendations of the Select Committee

The parliamentary panel had marked several mistakes related to the draft preparation and suggested modifications to reduce ambiguity. The suggestions made by the panel are given below.

Section 21 (annual value of property): “In general order,” remove the word “and add a clear comparison between real fare and” valid fares “for empty properties.

Section 22 (deduction from home property income): Specify that 30% standard deduction is applied after municipal tax cuts; Increase the construction of construction-pre-interest deduction to the assets given on rent.

Section 19 (Salary Cut – Schedule VII): Allow the pension deduction for non -employees receiving pension from a fund.

Section 20 (Professional Property): Amend the vocabulary to temporarily avoid taxing as “home property” income on unused business properties.

The committee said that these changes will improve fairness and clarity and make the law in accordance with the current provisions.

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