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Time of India
6 days ago
- Business
- Time of India
47 chapters brought down to 23; 819 provisions reduced to 536 in Income-tax Bill, 2025
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Lok Jan Shakti Party (Ram Vilas) MP in Lok Sabha and member of the Select Committee on the Income-Tax Bill, 2025, Arun Bharti , welcomed the Bill and said 47 chapters have been brought down to 23, while 819 provisions have been reduced to 536. Income Tax Bill 2025 is a major step by the NDA Govt for the simplification and transparency of the provisions of Income Tax Act 47 chapters have been brought down to 23. Around 819 provisions have been reduced to 536. The number of words has been brought down to almost sector will benefit, TDS limit has been assessment will be of this will make it easier...," the MP told Bharti said that the Bill brings sweeping structural changes to the tax code by simplifying provisions and enhancing said, "The Income Tax Bill, 2025, is a historic initiative aimed at making India's tax system simpler, more transparent, and just. Compared to the old laws, it introduces substantial structural reforms. The number of chapters has been reduced from 47 to 23. The number of sections has been brought down from around 819 to 536, and the total word count has been nearly halved. This means less confusion and more clarity -- that's the first key point."The LJP MP pointed out that one of the primary objectives of the new bill is to reduce "ambiguity" in which led to "disputes and court cases.""The new bill ensures clarity and reduces litigation. In the 1961 Act, the language was complex, the sections were lengthy, and the provisions were full of ambiguities, which consistently led to disputes and court cases. In contrast, the new bill uses simple, straightforward language, follows a table-based (tabular) format, and eliminates scope for confusion through well-defined and integrated tax year provisions," Bharti the impact of the bill on small businesses and emerging enterprises, Bharti said the legislation offers "significant relief" to startups and added, "The second key point is the significant relief provided to startups and MSMEs. There will be a faceless assessment process. The time limit for updating returns has been increased from two years to four. The threshold for TDS (Tax Deducted at Source) has been raised, reducing the compliance burden on small businesses. The hassles of receiving notices, responding to them, and paperwork will be greatly reduced."He further emphasised that the new Bill would tackle several long-standing taxpayer grievances, including delays in refunds, harsh TDS rules on late filings, and the repetitive nature of tax Bihar parliamentarian supplemented, "The third key point is the reduction in the compliance burden. Practical and timely solutions will be provided for issues such as delays in refunds, harsh and unclear TDS rules on late filings, and repeated notices. This is not just a tax reform -- it lays a new foundation for respecting and protecting honest taxpayers. Let us take a firm step toward a transparent and simplified tax system."Earlier on July 21, Select Committee on Income Tax Bill Chairperson and Bharatiya Janata Party MP Baijyant Panda presented the 4,584 pages Report of the Select Committee on the Income-Tax Bill, 2025 in the Lok Panda's leadership as Chairperson, the Committee undertook a thorough and inclusive review process. It conducted stakeholder consultations, meeting with industry leaders, mid-level tax practitioners, legal experts, MSME bodies, Non Profit Organisations, economists, and civil society representatives to gather diverse perspectives, according to an official 31-member committee had unanimously adopted the report during the comprehensive deliberations, the Committee submitted 285 recommendations focused on simplifying the tax regime and making the Income Tax legislation simplified and Income-Tax Bill, 2025, was tabled in Parliament in February and was referred to the Select Committee for a detailed the July 2024 Budget, the government proposed a comprehensive review of the Income-tax Act of 1961. The purpose was to make the Act concise and lucid and reduce disputes and litigation.
Time of India
22-07-2025
- Business
- Time of India
Now, Bhumre's driver gets summoned by income tax department
Chhatrapati Sambhajinagar: Jawed Shaikh, who is employed as a driver with Shiv Sena MP Sandipan Bhumre and his MLA son Vilas, was summoned by the . The department requested his presence along with his books of accounts and documents. Tired of too many ads? go ad free now Jawed Shaikh is already being investigated by the Economic Offences Wing (EOW) about why Mir Mehmood Ali Khan, a descendant of Salar Jung, gifted the driver prime land worth hundreds of crores. On July 3, Shaikh received a fresh summons under section 131(1A) of the Income Tax Act 1961, requesting his attendance in connection with proceedings under the Act in his case. Section 131(1A) grants the I-T department the authority to enforce an individual's attendance, discover and inspect any property, and issue commissions. It also allows the department to examine the assessee on oath and compel the production of necessary books of accounts and all relevant documents. The I-T department warned in its notice that any default by Jawed Shaikh would attract action under section 272A(1)(C) of the I-T Act, empowering the investigation officer to impose a penalty of Rs 10,000 for each default. Jawed Shaikh, a trusted aide of the Bhumres, became the focus of the investigation after Mir Mehmood Ali Khan gifted him prime plots valued at hundreds of crores. There are allegations that Jawed received approximately 8.5 acres in two instalments through hibanama (gift deed). The combined market valuation of these plots is about Rs 500 crores. Documents revealed that both transactions had common witnesses, and the bonds were purchased from the same notary lawyer. Applications to add Jawed Shaikh's name to the PR card for both properties were made on Feb 9, 2023, and his name was recorded on the PR card on May 25, 2023, and June 28, 2024, respectively. Tired of too many ads? go ad free now These prime plots are located in Chhatrapati Sambhajinagar city, where the economic offences wing of the city police is already investigating a related complaint. In the past few weeks, the EOW has recorded statements from Khan, four of his children, and Jawed Shaik. Unsatisfied with their responses, the EOW plans to summon them again to cooperate in the inquiry. Phone calls and messages sent to Jawed for his comments did not elicit any response.
Economic Times
21-07-2025
- Business
- Economic Times
Parliamentary panel recommends ease in refunds to small tax payers if IT return not filed in due time
Representative image. Synopsis A parliamentary panel has suggested key changes to the Income-Tax Bill 2025, focusing on clarity and alignment with existing laws. The recommendations include easing refund rules for small taxpayers, modifying property deduction calculations, and clarifying definitions for non-profits. These changes aim to reduce ambiguity and provide relief to taxpayers. The report of the parliamentary panel on the new Income-Tax Bill was presented in Lok Sabha on Monday. In its report, the panel has suggested important changes to tighten definitions, remove ambiguities, and align the new law with existing frameworks. ADVERTISEMENT The panel examined the Income-tax Bill 2025, which seeks to simplify language and structure of the Income Tax Act 1961 and submitted its report The Income-Tax Bill, 2025, was tabled in Parliament in February and was referred to the Select Committee for a detailed examination. The Committee in its 4,584 page report, identified several drafting corrections based on stakeholder suggestions, which they believe are essential for clarity and unambiguous interpretation of the new bill. The parliamentary panel has made a total of 566 suggestions/recommendations in its give a significant relief to tax payers, the committee has suggested change the provision which disallows refunds, if income tax returns are filed beyond the due law should not compel a return merely to avoid penal provisions for non-filing. ADVERTISEMENT The committee suggested removing the clause of mandatory requirement of filing return to claim refund by small tax payers whose income falls below the taxable threshold but from whom tax has been deducted at source. Flexibility should be given to such tax payers and they should be allowed to claim refund even in cases where the return is not filed in due give relief to property owners, the committee suggested that the standard 30 per cent deduction should be computed on the annual value of the property after deducting municipal taxes and to ensure that deduction for pre-construction interest should be given for let-out properties along with self-occupied ones as given in the existing IT Act. ADVERTISEMENT Other recommendations of the committee include aligning definition of micro and small enterprises with the MSME non-profit organisations, the committee asked for clarification over the terms 'income' vs 'receipts', anonymous donations, and the removal of the deemed application concept. The panel asked for these to be fixed to avoid legal disputes. ADVERTISEMENT The report also recommended amendments in the bill for clarity on advance ruling fees, TDS on provident funds, low-tax certificates, and penalty powers. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
The Hindu
21-07-2025
- Business
- The Hindu
Parliamentary panel retains Income Tax Bill provisions allowing tax officials to forcibly access social media, private email
The Parliamentary Select Committee appointed to review the new Income Tax Bill 2025 proposed by the government has retained the provisions in the new Bill empowering tax officials to access, forcibly if necessary, the social media and private emails of people they are conducting search and seizure operations on. The Income Tax Bill 2025 was introduced in the Lok Sabha in February 2025. The aim behind the Bill, as per the government, is to simplify and rationalise the existing Income Tax Act 1961 and the numerous amendments that have been made to it over the decades since it was introduced. It was then sent to a Select Committee, chaired by Baijayant Panda, for a review. The government on Monday (July 21, 2025) tabled the 4,575 page report in the Lok Sabha. The new Bill's expanded scope of powers given to tax officials during search and seizure operations has drawn criticism and calls for change, including from the experts the Select Committee consulted during its review. Stricter searches According to the new Bill, if a person is found to be in possession or control of any books of account, or other documents and information maintained digitally, on computer systems, or stored electronically, then they must provide the designated income tax officer 'reasonable technical and other assistance (including access code, by whatever name called) as may be necessary' to enable the officer to inspect 'any information, electronic records and communication or data contained in or available on such computer systems'. Further, the Bill also says that the authorised officer can gain access to these electronic systems by 'overriding the access code to any said computer system, or virtual digital space, where the access code thereof is not available'. A 'virtual digital space' includes social media accounts, online investment accounts, trading accounts, bank accounts, remote server or cloud server, and digital application platforms. According to the report, the stakeholders the Committee consulted during its examination of the Bill raised red flags regarding these provisions. Changes 'not feasible' The stakeholders suggested that the power to gain the access codes of social media accounts be placed out of the purview of relevant sections of the new Bill. They also stated that the Bill should make clear that, if access is gained to personal email addresses and computer systems, the use of these accounts 'shall be made only to the extent it is relevant for Income-Tax Act and not for any purpose beyond the Income-tax Act'. Others suggested that 'tangible reasons for seeking access may be recorded in writing prior to any such activity being undertaken'. The Select Committee, however, has argued that the provisions in the new Bill are necessary and therefore suggested no changes to them. 'Various incriminating evidences and material are found/seized from electronic records including WhatsApp communications, emails, etc,' it said in its report. 'In most of the cases of search operation the taxpayers do not share the password/login credential of online forums/portals/e-mail accounts, etc. 'This is because various encrypted communication modes are being used by tax payers to communicate and discuss their unaccounted transactions,' it added. 'The amendment has been rightly made to rationalise the provisions. Thus, the suggestion is not feasible.' With regard to the stakeholders' suggestion that tangible reasons for providing access be provided, the Committee said this was 'not feasible' as it 'seeks to provide safeguard in the statute to prevent abuse of power by Revenue officials as well as protect the privacy of taxpayers'. Significant simplification According to the Committee's report, the new Bill is a big step forward in simplifying India's income tax legislation. The new Bill has pared down the number of words in the law to 2,59,676 from the 5,12,535 in the Income Tax Act 1961. The number of chapters have also been reduced to 23 from 47, and the number of sections have been slashed to 536 from 819. On the other hand, to provide greater clarity, the new Bill has increased the number of tables it incorporates to 57 from 18, and the number of formulae to 46 from 6. 'The language has been simplified making the document easy to read and understand,' the Committee's report noted. 'The drafting style of the new Bill is straightforward and clear, making the provisions easier to understand.' Redundancies and need for cross-referencing between Sections and Chapters have been eliminated,' it added. 'Greater clarity has been brought in the Act without any structural or policy changes and without disturbing the long-settled taxation principles.'
Time of India
21-07-2025
- Business
- Time of India
Parliamentary panel recommends ease in refunds to small tax payers if IT return not filed in due time
The report of the parliamentary panel on the new Income-Tax Bill was presented in Lok Sabha on Monday. In its report, the panel has suggested important changes to tighten definitions, remove ambiguities, and align the new law with existing frameworks. The panel examined the Income-tax Bill 2025, which seeks to simplify language and structure of the Income Tax Act 1961 and submitted its report Explore courses from Top Institutes in Select a Course Category MCA Public Policy Leadership Technology Digital Marketing Design Thinking Degree PGDM Product Management CXO Data Science Data Science others Artificial Intelligence Finance Project Management Healthcare MBA healthcare Others Cybersecurity Management Operations Management Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details The Income-Tax Bill, 2025, was tabled in Parliament in February and was referred to the Select Committee for a detailed examination. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo The Committee in its 4,584 page report, identified several drafting corrections based on stakeholder suggestions, which they believe are essential for clarity and unambiguous interpretation of the new bill. The parliamentary panel has made a total of 566 suggestions/recommendations in its report. To give a significant relief to tax payers, the committee has suggested change the provision which disallows refunds, if income tax returns are filed beyond the due date. Live Events The law should not compel a return merely to avoid penal provisions for non-filing. The committee suggested removing the clause of mandatory requirement of filing return to claim refund by small tax payers whose income falls below the taxable threshold but from whom tax has been deducted at source. Flexibility should be given to such tax payers and they should be allowed to claim refund even in cases where the return is not filed in due time. To give relief to property owners, the committee suggested that the standard 30 per cent deduction should be computed on the annual value of the property after deducting municipal taxes and to ensure that deduction for pre-construction interest should be given for let-out properties along with self-occupied ones as given in the existing IT Act. Other recommendations of the committee include aligning definition of micro and small enterprises with the MSME Act . For non-profit organisations, the committee asked for clarification over the terms 'income' vs 'receipts', anonymous donations, and the removal of the deemed application concept. The panel asked for these to be fixed to avoid legal disputes. The report also recommended amendments in the bill for clarity on advance ruling fees , TDS on provident funds , low-tax certificates, and penalty powers.
