Mumbai : The Income-Tax Bill, 2025, which was introduced in the Lok Sabha on 13th February 2025 to replace the existing Income-Tax Act, 1961, has been formally withdrawn. To avoid confusion with multiple versions of the Bill and to provide a clear and updated version with all changes incorporated, the new version of the Income Tax Bill will be introduced for the consideration of the House on Monday, India Today TV has learnt.
The committee submitted its report to Parliament on July 21. It’s over 4,500 pages long and includes 285 suggestions to improve the draft New Income Tax Bill, 2025, which is meant to replace the old 1961 Act. Among the many proposals, a few stand out that could directly benefit ordinary taxpayers.
The 30% standard deduction, which is already allowed after municipal tax deductions, should be clearly mentioned in the new law. This will remove confusion. Secondly, the benefit of home loan interest deductions, currently only available for self-occupied properties, should also be extended to rented properties.
Many taxpayers face long delays in getting refunds for TDS (Tax Deducted at Source) or TCS (Tax Collected at Source). The committee wants the refund process to be quicker, easier, and more transparent. The new version retains the simplification intent but adds clarity to ensure no ambiguity arises, sources said. A core goal is to reduce interpretation disputes and align scattered tax provisions under a more coherent structure.
During deliberations, the finance ministry argued that the language merely clarified existing powers, already supported by court rulings and department circulars. The committee accepted the provision with some tweaks, concluding it doesn’t introduce new legal powers but restates current law in clearer terms.
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