The government will present the revised New Income Tax Bill, 2025, in Parliament on August 11, following major recommendations from a 31-member Select Committee led by BJP MP Baijayant Panda. Finance Minister Nirmala Sitharaman withdrew the earlier draft on Friday amid opposition protests.
Key recommendations in brief:
Refined definitions – Tighter wording and removal of ambiguities to align with existing laws.
Simpler language – Clearer, more user-friendly drafting to make the law easier to interpret.
285 major proposals – Out of 566 total recommendations in a 4,584-page report.
Refund eligibility – Remove rule barring refunds for late income tax return filing.
Section 80M deduction – Extend benefit for inter-corporate dividends to companies under section 115BAA’s concessional rate.
NIL TDS certificates – Permit taxpayers to obtain them under revised rules.
No tax rate changes – Clarification from the Income Tax Department, countering reports on LTCG hikes.
MSME definition alignment – Match definitions with the MSME Act.
Procedural clarity – Clearer rules on advance ruling fees, TDS on provident fund withdrawals, and penalty powers.
Stakeholder-driven changes – Several drafting corrections based on industry feedback.
The updated Bill is expected to be debated and passed in the current parliamentary session.
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