Income Tax Bill 2025 to be Tabled Today by Nirmala Sitharaman: Key Highlights Likely

New Delhi (The Uttam Hindu): Union Finance Minister Nirmala Sitharaman will present the Revised Income Tax Bill, 2025 in the Lok Sabha today. The bill, which aims to replace the decades-old Income Tax Act, 1961, was earlier introduced last week but had to be withdrawn after the House was adjourned.

The withdrawal came following the recommendations of the Lok Sabha Select Committee, chaired by BJP leader Baijayant Panda, which proposed 285 changes to the draft. The government has accepted these suggestions, and the updated version will now be tabled.

According to Parliamentary Affairs Minister Kiren Rijiju, the revised bill addresses confusion in the earlier draft and incorporates key recommendations, including simplification of legal language, corrections in drafting, proper phrasing, and accurate cross-referencing.

Major changes likely in the new bill include:

Tax Refunds: The earlier provision denying refunds for delayed return filings has been removed.

Inter-Corporate Dividends: Section 80M benefits, allowing certain companies to pay inter-corporate dividends, have been restored.

Zero TDS Certificate: Provision for NIL TDS Certificates for eligible taxpayers has been added.

The bill is expected to bring clarity, simplify compliance, and modernise the income tax framework in line with contemporary economic needs.

Ask ChatGPT