New Delhi, Aug 11 (PTI) Finance Minister Nirmala Sitharaman on Monday introduced the modified Income Tax bill in the Lok Sabha after including "almost all of the recommendations of the Select Committee." Introducing The Income-Tax (No.2) Bill, 2025, Sitharaman said the bill seeks to consolidate and amend the law relating to income-tax and will replace the Income Tax Act, 1961.

"Almost all of the recommendations of the Select Committee have been accepted by the government. In addition, suggestions have been received from stakeholders about changes that would convey the proposed legal meaning more accurately," said the statement of objects and reasons of the bill.

The Select Committee, chaired by Baijayant Panda, had suggested a host of changes in the Income-tax Bill, 2025, which was introduced in the Lok Sabha on February 13.

"There are corrections in the nature of drafting, alignment of phrases, consequential changes and cross-referencing. Therefore, a decision has been taken by the government to withdraw the Income-tax Bill, 2025 as reported by the Select Committee. Consequently, Income-tax (No. 2) Bill, 2025 has been prepared to replace the Income-tax Act, 1961," the statement said. PTI JD CS JD ANU ANU

Bills as Passed by Lok Sabha and Rajya Sabha

1. Income Tax Bill, 2025
2. Taxation Laws Amendment Bill, 2025

Income-tax consolidation: modified bill replaces existing statute after incorporating select committee recommendations and drafting corrections. The Income tax (No.2) Bill, 2025 is presented to consolidate and amend income tax law, replacing the Income Tax Act, 1961; it incorporates almost all Select Committee recommendations and stakeholder suggestions, and replaces the earlier bill to correct drafting, phrase alignment, consequential amendments and cross referencing issues.