Income Tax Act 2025 Date: When will New Income Tax Bill 2025 become I-T Act 2025?

The Lok Sabha on Monday (August 11) passed The Income-Tax (No.2) Bill 2025, which is the updated version of the original income-tax bill introduced by the Government in February 2025.

The revised bill has incorporated most of the changes suggested by the Select Committee of the Parliament and other stakeholders.

The Income-Tax (No.2) Bill 2025 is set to be implemented from next year. It will come into effect from April 1, 2026. Prior to its implementation, the Bill needs to become an Act. This will happen when the revised Bill gets approval from the Rajya Sabha and the President.

The Income-Tax (No.2) Bill 2025 will now go to the Rajya Sabha for approval. After it is passed by the Upper House, it will go to the President for assent. The Bill will become an Act once Presidential assent is provided.

Can the implementation be delayed?

No, the chances of a delay in the implementation of the Income Tax (No.2) Bill 2025 are minimal. The Bill was passed in the Lok Sabha as a Money Bill. And the Rajya Sabha cannot refuse a Money Bill.

The Sansad portal says, "The Rajya Sabha is required to return a Money Bill passed and transmitted by Lok Sabha within a period of 14 days from the date of its receipt. Rajya Sabha may return a Money Bill transmitted to it with or without recommendations. It is open to Lok Sabha to accept or reject all or any of the recommendations of Rajya Sabha."

In case the Rajya Sabha doesn't return a Money Bill within 14 days, then the Bill is deemed to have been passed by both Houses of Parliament.