Lok Sabha Passes Taxation Laws (Amendment) Bill Amid Din
Despite strong objections by opposition members over the Special Intensive Revision (SIR) of electoral registers, the Union Finance Minister Nirmala Sitharaman introduced two significant financial bills today in a short but significant session: the Income-Tax Bill, 2025, and the Taxation Laws (Amendment) Bill, 2025.
Additionally, the Finance Minsiter requested the House to take into account changes to the Finance Act of 2025 and the Income-tax Act of 1961.
Sandhya Rai presided over the proceedings when the session resumed at 4 p.m. "Vote ki chori band karo" and "SIR wapas lo" were among the angry cries of opposition lawmakers, but the Bills were approved by voice vote.
The six-decade-old Income-tax Act, 1961 is intended to be replaced by the Income-Tax Bill, 2025, which also includes more than 285 recommendations from the Parliamentary Select Committee, which was led by BJP MP Baijayant Panda.
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The updated draft improves cross-referencing between laws, clarifies deductions, and streamlines tax wording. Interestingly, it clarifies issues around income from home property, such as pre-construction interest on home loans and normal deductions.
Along with matching tax treatment for pension contributions and scientific research expenses, the Bill also establishes more precise definitions for terms like "capital asset," "micro and small enterprises," and "beneficial owner." It is scheduled to take effect on April 1, 2026.
Specific revisions are introduced in the Taxation Laws (Amendment) Bill, 2025, which is attached.
To bring the Unified Pension Scheme (UPS) benefits into line with those of the New Pension Scheme (NPS), it grants tax exemptions to its members.
Additionally, under Section 10 (23FE) of the Income-tax Act, it offers immediate tax relief to the Public Investment Fund of Saudi Arabia and its entities that invest in India.
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In order to expedite the handling of pending assessments and reassessments during search operations, the Bill further improves procedures pertaining to block assessments in income tax search cases.
Opposition demonstrations calling for the SIR process to be discontinued, claiming it undermines voter integrity, overshadowed the session despite its legislative importance.
The House was finally adjourned till Tuesday by the Chair. The government's intention to update India's tax system during a contentious monsoon season is shown by the passage of these bills.
The Rajya Sabha also adjourned for the day after special members discussed a number of public issues, such as the youngest generation's excessive usage of mobile phones and the ease with which the younger generation—including children—can obtain pornographic content online.