Parliament Passes New Income Tax Bill Amid Opposition Boycott

Strategic Insights -

The Rajya Sabha passed the Income Tax Bill without discussion on Tuesday, a move criticized by the Union finance minister for the opposition's lack of participation. The finance minister, speaking in the Rajya Sabha, accused the opposition of disrespecting the democratic process and prioritizing slogans over constructive dialogue. The opposition had staged a walkout in the Rajya Sabha earlier in the day, following a similar boycott in the Lok Sabha the previous day.

Key Takeaways:

  • The Parliament passed the new Income Tax Bill, replacing the Income-tax Act, 1961, which has been amended multiple times since its passage in 1961.
  • The Union finance minister criticized the opposition for not participating in discussions on the bill, despite agreeing to a 16-hour discussion in the Lok Sabha and 16 hours in the Rajya Sabha.
  • The opposition parties staged a walkout in the Rajya Sabha, with most Opposition leaders having been detained earlier in the day.
  • The new bill includes suggestions from stakeholders to make the proposed legal meaning more accurate and drafting corrections to make the bill more precise.
  • The government decided to withdraw the earlier Income-tax Bill, 2025, and introduce the Income-tax (No. 2) Bill, 2025.

Statistics:

  • The Income-tax Act, 1961, has been amended multiple times since its passage in 1961, with the new bill aiming to simplify and modernize the legislation.
  • The Select Committee submitted its report on the Income Tax Bill, 2025, on July 21, 2025.
  • The government introduced the Income Tax Bill, 2025, in the Lok Sabha on February 13, 2025.
  • The new bill replaces the Income-tax Act, 1961, which has been in place for over 64 years.

Sources:

  • "Finance minister criticizes opposition for not participating in Income Tax Bill discussion | India News - Times of India" (timescontent.com)
  • "Parliament passes Income Tax Bill, 2025, amid opposition boycott | India News - Times of India" (timescontent.com)
  • Lok Sabha TV, 13 February 2025, Budget Session, Lok Sabha, Introduction of the Income Tax Bill, 2025.
  • Press Information Bureau, 21 July 2025, Select Committee Report on the Income Tax Bill, 2025.