New Delhi: The Union Government on Friday formally withdrew the Income-Tax Bill, 2025, which it introduced in the Lok Sabha in February this year, replacing the existing Income-Tax Act, 1961.

A revised form of the new Income Tax bill will be introduced on August 11, which is expected to incorporate the recommendations made by the Select Committee chaired by Shri Baijayant Panda.

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The change in the bill is reportedly to avoid confusion with multiple versions of the bill, and it is also to provide a clear and updated version with all changes incorporated.

The new version of the bill will be introduced for the consideration of the House on Monday. On July 21, the committee submitted its over 4,500-pages long report to Parliament which included 285 suggestions to improve the draft New Income Tax Bill, 2025.

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The committee has reportedly suggested two major changes in the new tax bill. The first one is the 30% standard deduction, which is already allowed after municipal tax deductions and should be clearly mentioned in the new law, removing the confusion. The second is about the benefit of home loan interest deductions.

At present, the benefit is available only to self-occupied properties, and it would be extended to rented properties too, as per the potential revision. The committee has also suggested the refund process be quicker, easier, and more transparent.