SRINAGAR: Lok Sabha on Monday passed the Income Tax (No. 2) Bill, 2025, replacing the 64-year-old Income-tax Act, 1961 without debate, hours after Finance Minister Nirmala Sitharaman introduced it.
The bill, incorporating 566 recommendations from a 31-member Select Committee, aims to simplify tax laws, remove ambiguities, and align definitions with existing frameworks. Key changes include easing refund rules for late returns, clarifying MSME definitions, refining rules for non-profits, and addressing provisions on TDS, penalties, and advance rulings.
The passage came amid opposition uproar over electoral roll revisions in Bihar, which has disrupted both Houses throughout the monsoon session. The Taxation Laws (Amendment) Bill, 2025, was also passed without discussion.
