New Delhi, Aug. 11 -- The new Income Tax bill, which was passed by Lok Sabha on Monday, provides flexibility for allowing refund claims in cases where the return is not filed in due time and reduces the time period for filing TDS correction statements to two years from six years as provided in the Income Tax Act Act, 1961, government sources said.

The Income Tax (No.2) Bill, 2025, was passed without debate amid protests by opposition parties, hours after it was introduced in the House by Finance Minister Nirmala Sitharaman. It incorporates almost all suggestions of Select Committee that examined the bill.

The Income Tax (No.2) Bill, 2025, which was introduced on Monday afternoon after the government on Friday last withdrew the Income Ta...