New Delhi, Aug. 12 -- The Lok Sabha on Monday passed the Income-Tax (No 2) Bill -- a revised version of the earlier legislation - by extensively incorporating suggestions of the select committee of Parliament, which include further elimination of ambiguities for ease of taxpayers, enhancing ease of compliance, and aligning taxation laws with recent reforms. "This bill seeks to repeal the Income-tax Act, 1961 and re-enact the proposed legislation.," a memorandum attached with the bill said, mentioning that the purpose of the legislation is "to consolidate and amend the law relating to income-tax." The bill --passed in about three minutes with no discussion --seeks to provide relief to individual taxpayers by streamlining provisions of tax deduction at source (TDS) and other exemptions, besides permitting them to claim refunds without penalty even in the case of delayed filing of income-tax returns (ITRs). It also extends to companies that have opted for the new corporate tax regime certain tax deductions, available under the old regime, on dividends received from other firms. The government on Friday had withdrawn the original bill, introduced in the House on February 13, to incorporate the recommendations of the committee. The Lower House also passed another legislation - the Taxation Laws (Amendment) Bill, 2025 -- to amend the Income Tax Act, 1961 and to amend the Finance Act, 2025 to facilitate investments from Saudi Arabia through certain direct tax benefits and for certain payouts to beneficiaries of the new pension scheme. Union finance minister Nirmala Sitharaman said the government of India has reached an understanding with the government of Saudi Arabia to provide for certain direct tax benefits to the public investment funds of that country through the Income Tax Act. In addition, the Bill is required to extend certain exemptions from income tax for certain payouts to subscribers of the new Unified Pension Scheme (UPS). Also, the legislation is required to provide for some changes in the scheme of block assessment of search cases for its correct application. "Accordingly, the Taxation Laws (Amendment) Bill, 2025 has been prepared to give effect to the above decisions by way of amendment to the Income-tax Act, 1961 and the Finance Act, 2025," she said in a statement attached with the bill. The bill was passed by the House amid din, without any discussion as the Opposition disrupted proceedings. Experts termed the proposed overhauling and simplification of the existing Income-Tax Act, 1961 through the Income-Tax (No 2) Bill as progressive. Incorporation of the panel's suggestions shows the government's "responsiveness" to enact a facilitative tax regime, said Gouri Puri, partner at Shardul Amarchand Mangaldas & Co. It has addressed concerns about ambiguities, particularly regarding house property taxation, pension deductions, and the refund process for delayed filings, she said, adding that "these issues risked increased litigation, compliance complexity, and taxpayer uncertainty." The 31-member panel on June 21 submitted a 4,584-page report with 566 observations. "Key changes include allowing full deductions for commuted pensions, clarifying pre-construction interest for let-out properties, and enabling more flexible refund eligibility even after late filings. These measures aim to improve the taxpayer experience and broaden compliance," she said. Dinesh Kanabar, CEO at consultancy firm Dhruva Advisors, said the amended bill has accepted key recommendations of the select committee....