The Lok Sabha today passed two significant tax legislations — the Income-Tax (No. 2) Bill, 2025 and the Taxation Laws (Amendment) Bill, 2025 — amid loud protests from opposition members over the revision of electoral rolls in Bihar. Both bills were passed without any debate through a voice vote.
Income-Tax (No. 2) Bill: Modernizing Tax Laws
The Income-Tax (No. 2) Bill, 2025 aims to consolidate and update the existing Income Tax Act of 1961. This new bill will fully replace the decades-old legislation, incorporating nearly all recommendations made by the Select Committee chaired by senior BJP member Baijayant Panda.
The bill also addresses drafting corrections, phrase alignments, and other consequential changes to ensure clarity and legal precision. The government withdrew the earlier Income-Tax Bill, 2025 to introduce this revised version, which better reflects stakeholder suggestions.
Taxation Laws (Amendment) Bill: Tax Benefits and Amendments
The Taxation Laws (Amendment) Bill, 2025 amends both the Income-tax Act, 1961 and the Finance Act, 2025. It offers tax exemptions to subscribers of the Unified Pension Scheme (UPS), which was implemented from April 1, 2025. This move aligns tax benefits for UPS subscribers with those available under the New Pension Scheme (NPS).
The amendment also introduces changes related to block assessments in Income Tax search cases and extends certain direct tax benefits to public investment funds from Saudi Arabia.
Passage Amid Protests
Finance Minister Nirmala Sitharaman introduced both bills in the Lok Sabha earlier in the day. However, the passage occurred without any discussion, as opposition parties vocally protested over issues related to the revision of electoral rolls in Bihar.
Following the passage of these bills by voice vote, the Lok Sabha was adjourned for the day.