Lok Sabha Passes Key Taxation Bills Amid Protests

In a significant legislative move, the Lok Sabha has passed two important taxation bills, the Income Tax (No. 2) Bill and the Taxation Laws Amendment Bill, without any debate. This decision came amid protests from the opposition concerning the revision of the Bihar electoral roll. The new bills aim to consolidate existing tax laws and provide exemptions for pension scheme subscribers. Finance Minister Nirmala Sitharaman introduced both bills, which reflect recommendations from a select committee. The passage of these bills marks a pivotal moment in India's tax legislation.

By Narendra Chaudhary Aug 11, 2025, 20:09 IST

Lok Sabha Approves Taxation Bills

On Monday, the Lok Sabha approved two significant taxation bills—the Income Tax (No. 2) Bill and the Taxation Laws Amendment Bill—without engaging in any debate, despite opposition protests regarding the revision of the Bihar electoral roll.

The Income Tax (No. 2) Bill aims to consolidate and replace the existing Income Tax Act of 1961, which has undergone numerous amendments over the years.

This new bill includes nearly all recommendations from a select committee led by Baijayant Panda, a member of the Bharatiya Janata Party.

Meanwhile, the 2025 Taxation Laws Amendment Bill modifies both the 1961 Income Tax Act and the 2025 Finance Act, offering tax exemptions to those enrolled in the Unified Pension Scheme.

Both pieces of legislation were presented by Finance Minister Nirmala Sitharaman.

Following the passage of the bills via voice vote, the Lok Sabha was adjourned for the day.

Earlier, on Friday, the Union government had withdrawn the 2025 Income Tax Bill from Parliament, indicating plans to reintroduce it as the Income Tax (No. 2) Bill.

The original 2025 Income Tax Bill was first introduced in the Lok Sabha on February 13 and was referred to a select committee for review on the same day.

The decision to create a new bill was made to include suggestions from the select committee, which submitted its findings on July 21.

The government stated, “Almost all recommendations from the select committee have been accepted. Additional suggestions have also been received that need to be integrated to ensure accurate legislative intent.”