Skip to main content

Stay tuned for August 11.

India’s biggest tax law overhaul in decades is getting a rewrite and the changes could save you money, simplify compliance, and protect your assets. 

Here’s what’s new in the Revised Income Tax Bill 2025 ๐Ÿงต
The government has withdrawn the original Income Tax Bill, 2025 and will present a revised version in Parliament on August 11, after incorporating key suggestions from the Select Committee chaired by MP Baijayant Jay Panda.

The Select Committee submitted its report on July 21, with 285 recommendations to simplify, clarify, and align the bill with existing tax provisions.

Companies get relief too: the revised bill will include Section 80M deduction for inter-corporate dividends under Section 115BAA, which was missing in the earlier draft.

The bill will also allow taxpayers to obtain a NIL TDS certificate, offering flexibility in cash flow management.
To protect property owners, Clause 21 will be amended to prevent unintended higher taxation on vacant residential properties.

Tax treatment on commuted pensions will be standardized - bringing parity for government employees, private employees, and non-employees in approved schemes.
Other changes include:

➡️Softer penalties for late ITR filing when seeking refunds
➡️Alignment of definitions with the MSME Act
➡️Clarity on advance ruling fees
➡️Clearer rules on TDS for PF withdrawals
➡️Streamlined penalty powers

The core aim of the revised bill: make tax compliance simpler, fairer, and more consistent, without changing existing tax rates.

The Income Tax Bill 2025 is still in the making but these changes signal a shift towards transparency and taxpayer-friendly provisions. 

Stay tuned for August 11.

Comments

Post a Comment

Popular posts from this blog

Income Tax Department Grapples with 9.7 Million ITR Backlog, Taxpayers Await Refunds

The Income Tax (I-T) Department is facing a significant backlog of over 9.7 million verified income tax returns (ITRs) for the Assessment Year (AY) 2025-26, according to the latest official figures. As of Sunday, November 2, 2025, while the department has successfully processed a substantial 6.72 crore (67.2 million) ITRs, a staggering 97,07,702 verified returns remain in the queue, causing anxiety among taxpayers, especially those expecting refunds. The data, sourced directly from the Income Tax Department’s official portal and reflected in a screenshot from November 2, reveals the scale of the task. The department has received 8,01,81,924 filed returns, of which 7,69,31,814 have been verified by taxpayers. The gap between verified and processed returns constitutes the current backlog. (Screenshot of the Income Tax Department portal showing ITR statistics as on November 2, 2025) This delay is particularly troubling for individuals who filed their returns around the July 31...
Post a Comment
Read more

Form 10IEA Filing Requirements

Default Regime is New Regime for ITR Filing Form 10IEA Filing Requirements  ITR 1 - No Requirements to File Form 10IEA to Opt for old regime or re-entering to New Regime (No Switching Restrictions) ITR 2 - No Requirements to File Form 10IEA to Opt for old regime or re-entering to New Regime (No Switching Restrictions) ITR 3 - Form 10IEA Filing mandatory when opting for old regime and if opting again for New Regime in subsequent Year  (if opted old regime for one year and then opted for new regime in subsequent year then not eligible to opt old regime again means one time Switching option is there (Need to file Form 10IEA maximum 2 times only, First when you opt for old regime and Second when you opt for new regime in subsequent year and leaving old regime) (If Form 10IEA already filed for old regime for particular year then cant opt new regime in such year and vice-versa) ITR 4 - Form 10IEA Filing mandatory when opting for old regime and if opting again for New Regime in subse...
Post a Comment
Read more

๐Ÿšจ ITR REFUND ALERT – READ THIS BEFORE 31 DEC ๐Ÿšจ

Thousands of taxpayers are suddenly receiving this message ๐Ÿ‘‡ ๐Ÿ‘‰ “Your ITR refund is on hold due to risk management discrepancies. File revised return within a week.” ๐Ÿ’ก Irony? ⏳ Income Tax Dept took 4+ months to identify the issue ⏰ And now gives taxpayers barely a few days to fix it ❓ Why no detailed email received? Because most of these are system-generated risk flags. Sometimes:  • Email goes to old registered ID • Lands in spam • Or only SMS/portal alert is triggered ๐Ÿ‘‰ Always check the ITR portal → e-Proceedings / Worklist ๐Ÿ“Œ What does “ITR processing on hold” mean? It does NOT mean notice or scrutiny ❌ It means:  ๐Ÿ”น Refund claim looks unusual compared to data available with department ๐Ÿ”น Return is paused before issuing refund ๐Ÿ”น Taxpayer is given a chance to self-correct ⚠️ Common reasons refunds get flagged : ๐Ÿ”น TDS/TCS mismatch TDS claimed in ITR is higher than what appears in Form 26AS (employer/bank hasn’t deposited or corrected data yet) ๐Ÿ”น AIS vs ITR income mismat...
Post a Comment
Read more