The government has formally withdrawn the Income Tax Bill 2025, which was introduced in the Lok Sabha on February 13 with the aim of replacing the Income Tax Act, 1961. The withdrawal was announced to make way for a revised and improved version of the bill, which is scheduled to be introduced in Parliament on Monday.

The original bill sought to modernize and simplify India’s tax framework, but received mixed reactions from lawmakers and experts regarding certain provisions. The government has indicated its intention to address these concerns and bring a more comprehensive version for better clarity and implementation.

This move reflects the government’s responsiveness to parliamentary feedback and its commitment to refining tax laws to boost compliance and economic growth. Taxpayers and stakeholders are advised to watch for the upcoming bill introduction to understand the new regulatory changes that will shape India’s taxation landscape.