STATE TIMES NEWS
NEW DELHI: Finance Minister Nirmala Sitharaman on Friday withdrew the Income Tax Bill, 2025, in the Lok Sabha, and the government will come out with an updated version of the legislation after incorporating changes suggested by the Select Committee.
A new version of the Income Tax Bill will be introduced in the Lok Sabha on August 11.
The updated version of the I-T Bill, according to sources, will incorporate most of the recommendations of the Select Committee.
“To avoid confusion by 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,” sources said.
The Select Committee, chaired by Baijayant Panda, had suggested a host of changes in the Income Tax Bill, which was introduced in the Lok Sabha on February 13.
Soon after its introduction in the Lower House, the Bill, which will replace the six-decade-old Income Tax Act, 1961, was referred to the Select Committee for scrutiny.
The 31-member Select Committee had made some suggestions on the Bill.
They also favoured continuing tax exemption on anonymous donations made to religious-cum-charitable trusts in the new law, besides suggesting that taxpayers be allowed to claim TDS refund even after the ITR filing due date without paying any penal charges.
The government in the new Bill has exempted non-profit organisations (NPOs) from taxing anonymous donations received by purely religious trusts. However, such donations received by a religious trust that may also have other charitable functions, like running hospitals and educational institutions, will be taxed as per law, as per the Bill.
Meanwhile, Lok Sabha proceedings were adjourned for the day amid vociferous protests by opposition parties demanding a discussion on the ongoing revision of electoral rolls in Bihar.
Before the House was adjourned, Finance Minister Nirmala Sitharaman withdrew the earlier ‘Income-Tax Bill, 2025’, with the Select Committee having submitted its report on it.
As the House assembled at 3 pm, Krishna Prasad Tenneti, who was in the Chair, asked Sitharaman to move for leave to withdraw the Bill. She then withdrew the Bill.
Parliamentary Affairs Minister Kiren Rijiju said it is unfortunate that opposition parties are wasting time when private member bills were to be taken up. He said opposition parties must not say that the government did not cooperate as the government has said from the beginning that it is willing to discuss all issues under rules.
Earlier in the day, some members were even seen banging the table of the Lok Sabha Speaker, which was strongly objected to by presiding officer Tenneti.
“Yeh dhol nahi hai (this is not a drum). You cannot bang the table like this. I take strong objection to banging of the Lok Sabha Speaker’s table,” Tenneti, a TDP member, said.
With the members unrelenting in their protests, Tenneti, adjourned the proceedings till 3 pm.
When the House convened at 11 am, Speaker Om Birla paid homage to former Lok Sabha member and former Jammu and Kashmir Governor Satyapal Malik, who passed away on August 5. He also read out a reference on the anniversary of the Quit India Movement.
Soon after the Speaker read out the references, opposition members shouted slogans, displayed placards and some of them trooped into the Well as they protested against the SIR.
Despite the din, five questions and supplementaries were taken up during the 23 minutes of Question Hour.
With no let-up in the protests, the Speaker adjourned the proceedings till 12 noon.