Revised Income Tax Bill, 2025:
Finance Minister has tabled the revised Income Tax Bill, 2025 in the Lok Sabha, incorporating most of the 566 recommendations made by the Parliamentary Select Committee.
- A new legislation to consolidate, streamline, and modernise India’s direct tax framework, replacing the six-decade-old Income Tax Act, 1961.
- Features of the Revised Bill:
- Single ‘Tax Year’ Concept: Replaces “Previous Year” and “Assessment Year” with a uniform term to simplify understanding and compliance.
- Simplified Refund Provisions: Refunds allowed even if ITR is filed after the due date, reducing taxpayer grievances.
- Corporate & MSME Relief: Rs 80M deduction for inter-corporate dividends restored and MSME definition aligned with MSME Act for uniformity.
- Rationalised Property Taxation: Notional rent on vacant property removed; clear deductions for municipal tax and interest on rented property.
- Compliance & Governance Reform: Unnecessary provisions removed, CBDT empowered for digital-era rule-making and NIL-TDS option for zero-liability taxpayers.
- Charitable Trust & LLP Relief: Relaxation in transfer pricing rules and removal of Alternate Minimum Tax on LLPs.
- Enhanced Digital Alignment: Structured section numbering, improved terminology, and cross-referencing for easier navigation and reduced ambiguity.
