Income Tax Overhaul: New Bill Simplifies Tax Filing and Refund Claims
The Lok Sabha has passed a new Income Tax Bill allowing TDS refunds even when I-T returns are filed late. This bill, effective from 2026, simplifies tax terms and introduces the 'tax year' concept. It also addresses TDS claims, education remittances, and reintroduces inter-corporate dividend deductions.
- Country:
- India
The Lok Sabha has successfully passed a comprehensive Income Tax Bill set to take effect from April 1, 2026. The bill replaces the outdated Income Tax Act of 1961, aiming to simplify the country's tax filing process.
Introduced by Finance Minister Nirmala Sitharaman, the bill simplifies tax-related nomenclature and allows individuals to claim TDS refunds even if they miss the original income tax return deadline. This aligns with recommendations from the Select Committee, which had previously reviewed the bill.
Additionally, the bill introduces 'nil' TCS for education-related remittances under the Liberalised Remittance Scheme and addresses key industry concerns, including dividend deductions and the definition of 'associated enterprises'.
(With inputs from agencies.)
Google News