Amid persistent disruptions in the Lok Sabha by Opposition members demanding a discussion on the special intensive revision (SIR) of electoral rolls in Bihar, Finance Minister Nirmala Sitharaman on Friday withdrew the Income Tax Bill, 2025 as the government is set to introduce a fresh version of the Bill on August 11.

Official sources said the updated version of the legislation will incorporate most of the changes suggested by the Select Committee chaired by BJP MP Baijayant Panda. The original version of the Bill — meant to replace the six-decade-old Income Tax Act, 1961 — was introduced in the Lok Sabha on February 13.

“To avoid confusion from multiple versions of the Bill and to provide a clear and updated version with all changes incorporated, the new version of the Income Tax Bill will be introduced for the consideration of the House on Monday,” an official said.

Tax exemption for religious trusts

Soon after its introduction in the Lower House, the Bill was referred to the Select Committee for scrutiny. The 31-member Select Committee’s suggestions included continuing the tax exemption on anonymous donations made to religious-cum-charitable trusts in the new law, and allowing taxpayers to claim TDS refunds even after the due date for filing income tax returns, without paying any penal charges.

The new Bill exempts taxes for anonymous donations to non-profit organisations which are purely religious trusts. However, such donations received by a religious trust that may also have other charitable functions, such as running hospitals or educational institutions, will be taxed, as per the new Bill.

Soon after the withdrawal of the Bill on Friday, Parliamentary Affairs Minister Kiren Rijiju lamented that the Opposition benches were disrupting proceedings at a time meant to take up Private Members’ Bills.

The Opposition, however, continued its protests on the SIR for a 13th straight day, resulting in the House being adjourned for the day.