Swift Passage: Revolutionary Income Tax Bill Overhauls 63-Year-Old Law
The Income Tax Bill (No.2) 2025 has been passed in Lok Sabha, set to replace the existing law governing income taxation. The bill simplifies TDS, exemptions, and includes provisions for refunds on delayed filings while also sparking privacy concerns due to enhanced search powers for tax authorities.
- Country:
- India
The Lok Sabha swiftly passed the Income Tax Bill (No.2) 2025, aiming to overhaul a 63-year-old taxation law without any debate as opposition parties protested over other issues. The bill introduces streamlined processes for TDS, exemptions, and refunds while addressing compliance challenges.
Finance Minister Nirmala Sitharaman updated the bill following recommendations from a Parliamentary panel. Key updates include simplified definitions such as 'tax year', reintroduction of deductions for inter-corporate dividends, and the amendment of loss carry-forward rules. Noteworthy provisions include 'nil' TCS for LRS remittances for educational purposes.
Despite offering taxpayer-friendly changes, concerns remain about privacy due to expanded powers for tax officers to access digital platforms during searches. The legislation, set to be enforced in 2026, awaits approval from the Rajya Sabha and the President.
(With inputs from agencies.)
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