Lok Sabha passes Income-Tax (No. 2) Bill and Taxation Laws (Amendment) Bill, 2025 without debate
The Lok Sabha on 11 August 2025 passed the Income-Tax (No. 2) Bill, 2025 and the Taxation Laws (Amendment) Bill, 2025 by voice vote without debate, amid Opposition protests.
Summary
The Lok Sabha passed the Income-Tax (No. 2) Bill, 2025 and the Taxation Laws (Amendment) Bill, 2025 by voice vote without debate on 11 August 2025, amid Opposition protests over the revision of electoral rolls in Bihar. Finance Minister Nirmala Sitharaman introduced the revised Income-Tax Bill after the government withdrew the earlier version introduced on 13 February 2025; the new draft incorporates most recommendations of the Select Committee headed by Baijayant Panda and seeks to replace the Income-Tax Act, 1961. The Taxation Laws (Amendment) Bill extends tax exemptions to subscribers of the Unified Pension Scheme and changes the block assessment scheme for income tax search cases.
Key facts
- Passed by Lok Sabha
- 11 Aug 2025, voice vote, without debate
- Bills
- Income-Tax (No. 2) Bill, 2025; Taxation Laws (Amendment) Bill, 2025
- Introduced by
- FM Nirmala Sitharaman
- Earlier bill
- Introduced 13 Feb 2025; withdrawn
- Select Committee
- Headed by Baijayant Panda
- Replaces
- Income-Tax Act, 1961
- Taxation Laws Bill
- Tax exemptions for Unified Pension Scheme subscribers; block assessment changes
Practice MCQs 4 questions
Who headed the Select Committee whose recommendations were incorporated in the Income-Tax (No. 2) Bill, 2025 passed by the Lok Sabha on 11 August 2025?
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Correct answer: A — Baijayant Panda
The revised Income-Tax Bill incorporated most of the recommendations of the Select Committee headed by Baijayant Panda.
The Income-Tax (No. 2) Bill, 2025 passed by the Lok Sabha in August 2025 seeks to replace which law?
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Correct answer: B — Income-Tax Act, 1961
The revised Income-Tax Bill aims to replace the six-decade-old Income-Tax Act, 1961.
Consider the following statements about the tax bills passed by the Lok Sabha on 11 August 2025: 1. Both bills were passed by voice vote without debate. 2. The Taxation Laws (Amendment) Bill, 2025 extends tax exemptions to subscribers of the Old Pension Scheme. Which of the above is/are correct?
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Correct answer: A — 1 only
Statement 1 is correct: both bills were passed by voice vote without any debate amid Opposition protests. Statement 2 is incorrect: the Taxation Laws (Amendment) Bill extends tax exemptions to subscribers of the Unified Pension Scheme.
The Taxation Laws (Amendment) Bill, 2025 passed by the Lok Sabha on 11 August 2025 provides tax exemptions to subscribers of which scheme?
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Correct answer: D — Unified Pension Scheme
The Taxation Laws (Amendment) Bill, 2025 aims to provide tax exemptions to subscribers of the Unified Pension Scheme and also changes block assessment for income tax search cases.