Revised Income Tax Bill, 2025
Kartavya Desk Staff
Source: FE
Context: 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.
About Revised Income Tax Bill, 2025:
• What it is? A new legislation to consolidate, streamline, and modernise India’s direct tax framework, replacing the six-decade-old Income Tax Act, 1961.
• A new legislation to consolidate, streamline, and modernise India’s direct tax framework, replacing the six-decade-old Income Tax Act, 1961.
• Simplify compliance by removing outdated provisions and improving drafting clarity. Enhance transparency in tax administration. Incorporate stakeholder inputs for fairer tax practices. Facilitate ease of doing business through clear, consistent, and modern legal language.
• Simplify compliance by removing outdated provisions and improving drafting clarity.
• Enhance transparency in tax administration.
• Incorporate stakeholder inputs for fairer tax practices.
• Facilitate ease of doing business through clear, consistent, and modern legal language.
• Key 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.
• 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.