Nirmala Sitharaman withdraws Income Tax Bill in Lok Sabha; new Bill to be launched on Aug. 11

Amid persistent disruptions within the Lok Sabha by Opposition members demanding a dialogue on the particular intensive revision (SIR) of electoral rolls in Bihar, Finance Minister Nirmala Sitharaman on Friday withdrew the Income Tax Bill, 2025 as the federal government is ready to introduce a contemporary model of the Bill on August 11.

Official sources mentioned the up to date model of the laws will incorporate a lot of the adjustments recommended by the Select Committee chaired by BJP MP Baijayant Panda. The unique model of the Bill — meant to exchange the six-decade-old Income Tax Act, 1961 — was launched within the Lok Sabha on February 13.

“To keep away from confusion from a number of variations of the Bill and to offer a transparent and up to date model with all adjustments integrated, the brand new model of the Income Tax Bill might be launched for the consideration of the House on Monday,” an official mentioned.

Tax exemption for spiritual trusts

Soon after its introduction within the Lower House, the Bill was referred to the Select Committee for scrutiny. The 31-member Select Committee’s strategies included persevering with the tax exemption on nameless donations made to religious-cum-charitable trusts within the new legislation, and permitting taxpayers to say TDS refunds even after the due date for submitting revenue tax returns, with out paying any penal prices.

The new Bill exempts taxes for nameless donations to non-profit organisations that are purely spiritual trusts. However, such donations obtained by a spiritual belief that will additionally produce other charitable capabilities, comparable to working hospitals or instructional establishments, might be taxed, as per the brand new Bill.

Soon after the withdrawal of the Bill on Friday, Parliamentary Affairs Minister Kiren Rijiju lamented that the Opposition benches had been disrupting proceedings at a time meant to take up Private Members’ Bills.

The Opposition, nevertheless, continued its protests on the SIR for a thirteenth straight day, ensuing within the House being adjourned for the day.