The newly amended Income Tax Bill 2025 has been passed in the Lok Sabha. Presented by Finance Minister Nirmala Sitharaman, the bill incorporates most of the recommendations made by the Select Committee headed by MP Baijayant Panda and was passed in just four minutes. This step comes after the government withdrew the earlier version of the bill last week. Originally introduced on February 13 to replace the nearly six-decade-old Income Tax Act of 1961, the bill was withdrawn after committee recommendations, and has now been reintroduced with several changes that will impact ordinary taxpayers.

The new provisions are aimed at simplifying tax procedures, reducing unnecessary paperwork, and bringing more transparency in tax deductions. Among the key benefits for taxpayers are: exemption from filing a complete ITR solely for claiming TDS refunds—this can now be done through a simple form; eligibility for refunds even in cases of delayed return filing, which was previously restricted; and the facility to obtain a “Zero TDS Certificate” in advance to prevent unnecessary tax deductions on income.

These benefits will apply to doctors, lawyers, artists, freelancers investing independently in approved pension schemes; private-sector employees without company pension plans but who have invested in approved pension schemes; legal heirs or nominees receiving a lump-sum pension amount after the death of the account holder; and beneficiaries of group insurance pension schemes who are not direct employees of the organization but receive benefits from it. The government hopes these measures will make the tax system simpler, more transparent, and taxpayer-friendly.