New Delhi, Aug 11 (IANS) In a brief but consequential sitting on Monday, the Lok Sabha passed two major financial legislations — the Income-Tax Bill, 2025 and the Taxation Laws (Amendment) Bill, 2025 — amid loud protests by opposition members over the Special Intensive Revision (SIR) of electoral rolls.

The Bills were moved by Union Finance Minister Nirmala Sitharaman, who urged the House to consider amendments to the Income-tax Act, 1961 and the Finance Act, 2025.

The session resumed at 4 p.m. with Sandhya Rai presiding over the proceedings. Despite the din created by opposition members chanting slogans such as “Vote ki chori band karo” and “SIR wapas lo”, the Bills were passed via voice vote.

The Income-Tax Bill, 2025 seeks to replace the six-decade-old Income-tax Act, 1961 and incorporates over 285 recommendations made by the Parliamentary Select Committee chaired by BJP MP Baijayant Panda.

The revised draft simplifies tax language, clarifies deductions, and strengthens cross-referencing across provisions. Notably, it addresses ambiguities around income from house property, including standard deductions and pre-construction interest on home loans.

The Bill also introduces clearer definitions for terms such as “capital asset,” “micro and small enterprises,” and “beneficial owner,” while aligning tax treatment for pension contributions and scientific research expenditures. It is set to come into force from April 1, 2026.

The accompanying Taxation Laws (Amendment) Bill, 2025 introduces targeted reforms. It extends tax exemptions to subscribers of the Unified Pension Scheme (UPS), aligning it with benefits under the New Pension Scheme (NPS).

It also provides direct tax relief to the Public Investment Fund of Saudi Arabia and its subsidiaries investing in India, under Section 10 (23FE) of the Income-tax Act.

Additionally, the Bill refines provisions related to block assessments in income tax search cases, aiming to streamline the treatment of pending assessments and reassessments during search operations.

Despite the legislative significance, the session was overshadowed by opposition protests demanding the withdrawal of the SIR process, which they allege compromises voter integrity.

The Chair eventually adjourned the House till Tuesday. The passage of these Bills signals the government’s intent to modernise India’s tax architecture while navigating a politically charged monsoon session.

Rajya Sabha also adjourned for the day after special members on certain public issues including use of excessive mobile phone among youngesters, easy access for young generation, even children to obscene material through Internet etc.

–IANS

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