In a dramatic session marked by protests, the Lok Sabha on Monday passed two key tax bills without any discussion, prompting strong objections from the Opposition. The bills—The Income Tax (No. 2) Bill, 2025 and The Taxation Laws (Amendment) Bill, 2025—were moved by Finance Minister Nirmala Sitharaman and cleared by a voice vote amid uproar over the revision of the electoral roll in Bihar.
The Income Tax (No. 2) Bill, 2025 seeks to consolidate and amend provisions related to the Income Tax Act, 1961, while the Taxation Laws (Amendment) Bill, 2025 introduces changes to both the Income Tax Act, 1961, and the Finance Act, 2025. Following their passage, the Lok Sabha was adjourned for the rest of the day.
Earlier in the day, Finance Minister Sitharaman had reintroduced a revised version of the Income Tax Bill, incorporating most of the recommendations from the Standing Committee chaired by Baijayant Panda. This move came after the government withdrew the original version of the bill last week.
The initial draft, tabled on February 13, aimed to replace the six-decade-old Income Tax Act, 1961. However, after reviewing the Standing Committee’s suggestions, the government decided to present an updated version on August 11 to provide lawmakers with a single, streamlined, and updated legislative framework.