Income-tax and Taxation Laws Amendment Bills Passed in Lok Sabha without Discussion

Moneylife Digital Team 12 August 2025

Economy & Nation

The Lok Sabha on Monday pushed through two major financial reform bills and key sports legislation during a stormy Monsoon session marked by loud opposition protests over the Special Intensive Revision (SIR) of electoral rolls.

The Income-Tax Bill, 2025, and the Taxation Laws (Amendment) Bill, 2025—both moved by Union finance minister Nirmala Sitharaman—were cleared by voice vote, despite Opposition members of Parliament (MPs) raising slogans such as 'vote ki chori band karo' and 'SIR wapas lo'. The session, presided over by Sandhya Rai, saw the treasury benches pressing ahead with the legislative agenda amid repeated disruptions.

The Income-Tax Bill, 2025 seeks to replace the six-decade-old Income-tax Act, 1961 and incorporates over 285 recommendations of the Parliamentary select committee chaired by Bharatiya Janata Party (BJP) MP Baijayant Panda. The legislation claims to simplify tax language, clarify deductions, strengthen cross-referencing, and address long-standing ambiguities on income from house property, including standard deductions and pre-construction interest on home loans.

It also introduces clearer definitions for key terms such as 'capital asset', 'micro and small enterprises' and 'beneficial owner', while aligning tax treatment for pension contributions and scientific research expenditure. The new law will take effect from 1 April 2026.

The accompanying Taxation Laws (Amendment) Bill, 2025 brings targeted changes, including extending tax exemptions to subscribers of the unified pension scheme (UPS) in line with benefits under the new pension scheme (NPS). It also grants direct tax relief to the Public Investment Fund of Saudi Arabia and its subsidiaries investing in India under Section 10(23FE) of the Income-tax Act and streamlines provisions for block assessments in income-tax search cases.

#monsoonsession2025 #LokSabha passes The Taxation Laws (Amendment)
Bill, 2025

The Bill further amends the Income-tax Act, 1961, and the Finance Act, 2025.@nsitharamanoffc @nsitharaman @LokSabhaSectt @loksabhaspeaker pic.twitter.com/6NJk0EHJeQ
— SansadTV (@sansad_tv) August 11, 2025

Earlier in the day, the House also passed the National Sports Governance Bill, 2024, and the Anti-Doping (Amendment) Bill, 2025—both introduced by Union minister for youth affairs and sports Mansukh Mandaviya. The government says the Sports Governance Bill is intended to improve transparency and efficiency in sports administration, enhance infrastructure and management, and lay the groundwork for a future Olympic bid. The anti-doping amendment strengthens the national framework for combating prohibited substances in sport. Both were passed by voice vote.

In the Rajya Sabha, members approved the Readjustment of Representation of Scheduled Tribes in Assembly Constituencies of the State of Goa Bill, 2025, earlier cleared by the Lok Sabha, to redraw constituency boundaries for better representation of Scheduled Tribes in the state assembly.

The Lok Sabha was adjourned until Tuesday after the passage of the Bills, while the Rajya Sabha ended its sitting for the day following members’ interventions on issues ranging from excessive mobile phone use among youth to the easy online availability of obscene material to minors.

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