The Lok Sabha on Monday passed the revised New Income Tax Bill 2025, within an hour of its introduction by Union Finance Minister Nirmala Sitharaman. Notably, the opposition benches were empty during the passage of the bill.
The bill seeks to replace the existing Income Tax Act of 1961 with a more streamlined and litigation-resistant direct tax code.
The bill proposes to allow deductions for inter-corporate dividends for certain companies, permit taxpayers to claim refunds after filing their returns, even if the deadline has passed, and allow taxpayers to avail NIL TDS certificates if they don’t have a tax liability.
The bill also aims to clarify the definition of “relative” to avoid ambiguity and allow deduction of pre-construction interest on borrowed capital for let-out properties.
The revised bill is expected to benefit taxpayers in several ways including reduced litigation by simplifying tax laws and reducing complexity.
The bill’s focus on digital tax administration and faceless assessment will make compliance easier and more efficient.
The bill also provides a more relieved tax structure, ensuring more money is saved in the hands of taxpayers.
The government’s objective behind introducing the revised bill is to provide a clear and updated version of the tax law, addressing concerns and suggestions from various stakeholders. According to Baijayant Panda, the new law will simplify India’s decades-old tax structure, cutting down legal confusion.