Tax Bill Overhaul: Govt Withdraws 2025 Act, Promises Simpler Regime
The government on Friday, August 8, 2025, withdrew the much-anticipated Income Tax Bill, 2025, designed to replace the archaic 1961 Act. This decision follows extensive consultations and incorporates feedback from a parliamentary select committee.
A revised version of the bill, incorporating key recommendations, will be presented shortly. The government emphasized the move aims to streamline the tax system and address concerns raised by various stakeholders.
The select committee’s suggestions focused on key areas of contention. These include crucial modifications to provisions related to refund claims for delayed filings and clarifications for non-profit organizations.
The withdrawal and subsequent revision signal a commitment to a more transparent and user-friendly tax structure. This move is expected to positively impact millions of taxpayers and contribute to ease of doing business in India. The timely implementation of a simplified tax regime is crucial for sustained economic growth and investor confidence.
