Latest news with #NewIncomeTaxBill
Time of India
3 hours ago
- Business
- Time of India
New Income Tax bill halves word count, eases compliance: Chairman of the Finance Select Committee, Baijayant Jay Panda
BJP Member of Parliament and Chairman of the Finance Select Committee , Baijayant Jay Panda on Tuesday reflected upon the ongoing simplification of India's tax laws, stated that the newly proposed Income Tax Bill aims to make compliance easier for taxpayers without altering tax policies or rates. Speaking about the legislative overhaul, Panda said the new draft bill reduces the word count of the Income Tax Act by nearly 50 per cent, from around 5 lakh words to 2.5 lakh. "Under PM Modi, a lot of the very obsolete laws have been overhauled over the last 11 years. In line with this, Finance Minister Nirmala Sitharaman had said last year that the Income Tax is also going to be overhauled for simplification," he said. Explore courses from Top Institutes in Please select course: Select a Course Category Technology Public Policy Degree Digital Marketing others Operations Management Design Thinking Project Management Leadership PGDM Management CXO MBA healthcare Data Science Data Science Artificial Intelligence MCA Cybersecurity Others Healthcare Data Analytics Finance Product Management Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details "The Ministry had worked on it and presented to Parliament few months ago - a simple version of New Income Tax Bill where the word count has been reduced by 50 per cent, from 5 lakh-odd words to about 2.5 lakh simple formulae and tables have been given so that it becomes simpler," he further added. Panda also highlighted the motive behind this move. "Our mandate was not to change the tax policy or to change the tax rates, it was to make sure that the Act becomes simple," Panda clarified. Panda presented the report of the Select Committee on the new Income-Tax Bill in Lok Sabha on Monday with its recommendations. Live Events Recently, the report of the parliamentary panel on the new Income-Tax Bill was presented in Lok Sabha. 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 the 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 report.
Time of India
2 days ago
- Business
- Time of India
New Income Tax Bill: Changes in TDS refund claims while filing ITR? Top points suggested by Parliamentary panel
The Income Tax Bill, 2025 aims to replace the Income Tax Act, 1961. (AI image) New Income Tax Bill 2025: A Parliamentary committee reviewing the new Income Tax Bill has recommended that the Ministry of Finance should permit individual taxpayers to file returns and claim TDS refunds beyond the deadline without penalties. The committee also advocated for tax exemption on anonymous contributions to trusts serving both religious and charitable purposes. The report, presented in the Lower House by Select Committee chairperson Baijayant Panda of BJP, scrutinised the Income Tax Bill, 2025, which aims to replace the Income Tax Act, 1961. New Income Tax Bill: Top Changes Suggested by Panel Regarding TDS refund claims by individuals not otherwise required to submit tax returns, the committee proposed eliminating the Income Tax Bill clause that requires mandatory filing of I-T returns by the deadline, PTI reported. The committee notes that the present requirement to submit returns solely for refund purposes could unintentionally result in legal action, especially affecting small taxpayers whose earnings are below taxable limits but have experienced tax deductions at source. "In such scenarios, the law should not compel a return merely to avoid penal provisions for non-filing. The committee, therefore, recommend to remove sub-clause (1)(ix) from Clause 263 to provide flexibility for allowing refund claims in cases where the return is not filed in due time," the report specified. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read More Undo According to a PTI, the committee sought clarification regarding the taxation of anonymous donations to Non-Profit Organisations (NPOs) that serve both charitable and religious purposes, requesting the removal of existing ambiguities. The panel expressed opposition to the taxation of NPO 'receipts', stating it contradicts the Income Tax Act's principle of real income taxation. They advocated for the reintroduction of the term 'income' to ensure taxation applies only to the net income of NPOs. Noting the considerable differences in how anonymous donations to registered NPOs are treated, the committee recommended tax exemption for both religious and charitable trusts, acknowledging that many organisations operate with dual objectives. The committee highlighted an oversight in the Bill regarding religious-cum-charitable trusts, despite its aim of textual simplification. This omission could negatively affect numerous organisations within India's NPO sector. Under Clause 337 of the Income Tax Bill, 2025, all registered NPOs would face a uniform 30 per cent taxation on anonymous donations. The only exception would apply to organisations established exclusively for religious activities. This represents a significant shift from Section 115BBC of the Income-tax Act, 1961. The current legislation offers broader exemptions, where anonymous donations to trusts or institutions established for both religious and charitable purposes remain untaxed. However, this exemption excludes cases where such donations are specifically allocated to universities, educational institutions, hospitals, or medical facilities operated by the same trust or institution. The current regulation appropriately acknowledges these "religious-cum-charitable" institutions as a separate and legitimate category qualified for benefits on unnamed donations, recognising that such establishments frequently receive funds through conventional methods where identifying donors is unfeasible. "The committee strongly urge the reintroduction of a provision analogous to the explanation found in Section 115BBC of the 1961 Act," stated the Select Committee report. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Upturn
2 days ago
- Business
- Business Upturn
Select Committee submits report on New Income Tax Bill, 2025; overhaul of 1961 Act proposed
By Aditya Bhagchandani Published on July 21, 2025, 13:17 IST The Select Committee of Parliament on Monday (July 21) presented its report on the New Income Tax Bill, 2025, to the Lok Sabha. The 31-member committee, chaired by BJP leader Baijayant Panda, was tasked with examining the Bill clause by clause. After adopting its final report on July 16, the panel submitted it during the ongoing Monsoon Session. The Bill, introduced by Finance Minister Nirmala Sitharaman on February 13, proposes a complete overhaul of the six-decade-old Income Tax Act, 1961, aiming to make the tax law simpler and more transparent. One of the most striking changes is the drastic reduction in length and complexity. The word count of the Act is proposed to be halved — from over 5.12 lakh words to about 2.6 lakh — with the number of sections cut down from 819 to 536, and chapters reduced from 47 to 23. A key change is the replacement of the terms 'previous year' and 'assessment year' with a single term, 'tax year', eliminating the two-stage income reporting system and streamlining filing procedures. The Bill also introduces tables and formulae to replace legal jargon, trims more than 2,000 provisos and explanations, and restructures TDS and TCS rules into clear tables. The committee considered over 1,300 suggestions from industry bodies, tax professionals and stakeholders, ultimately accepting 285 recommendations, including 84 major changes. It consulted experts and groups such as CII and FICCI during meetings in Bengaluru and Mumbai, and sought public input via Sansad TV, newspapers and social media. For salaried taxpayers, perquisite rules have been consolidated into simple tables, while provisions for non-profit organisations are grouped under one chapter. Outdated and redundant clauses have been dropped. Officials believe the new law will make tax provisions more readable, cut down litigation and lower compliance costs. The government aims to implement the New Income Tax Act starting April 1, 2026. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
The Hindu
26-06-2025
- Business
- The Hindu
Income Tax Department conducts outreach programme in Coimbatore
The Income Tax Department, Coimbatore, conducted an outreach programme - Stakeholders Consultative meet - in Coimbatore on Thursday. Tax payers, tax professionals and representatives from the professional and trade associations gave their suggestions and feedback regarding taxpayer services and Income Tax related issues at the meeting in which Arun C. Bharat, Chief Commissioner of Income Tax, Coimbatore, and T. Diwakar Prasad, Principal Commissioner of Income Tax, Coimbatore, participated. At the technical sessions, G. Ramasamy, former president of Institute of Chartered Accountants of India (ICAI), spoke on New Income Tax Bill and its origin and evolvement. Auditor G. Karthikeyan briefed the major changes in the New Income Tax Bill. Srinivas Kanna, Joint Commissioner of Income Tax, elaborated the development of e-Governance and digital initiatives in the Income Tax Department. Common errors while filing return of income and the role of auditors in tax compliance were explained by auditor Ramnath, a press release from the Department said.
Time of India
27-05-2025
- Business
- Time of India
Income tax changes: New Income Tax Bill & New Income Tax Regime
New Income Tax Regime Income tax changes: Finance Minister Nirmala Sitharaman introduced several sweeping changes under the new income tax regime during her Budget 2025 speech earlier this year. The new income tax regime, which is also the default income tax regime, has new tax slabs effective FY 2025-26. Additionally, the basic tax exemption limit and the income level up to which taxpayers are required to pay zero or nil tax has also undergone a change. The most important is that individuals having a taxable income up to Rs 12 lakh will have to pay ZERO tax. The new income tax regime was introduced by the Narendra Modi government a few years ago as an alternate regime for taxpayers to file their tax returns under. The aim of the new income tax regime was to make the income tax return filing process easier without too much paperwork and documentation. However, unlike the old income tax regime, the new tax regime does not offer the most popular tax exemptions and deductions like Section 80C, Section 80D, LTA, HRA etc. One major deduction that is available under the new income tax regime is standard deduction. In fact, the standard deduction available under the new tax regime is higher at Rs 75,000 compared to Rs 50,000 under the old income tax regime. Additionally, the government proposes to get the New Income Tax Bill passed this year, which is a simplified and up-to-date version of the Income Tax Act 1961. The New Income Tax Bill will have key changes for taxpayers as well. As changes in the income tax return filing, income tax calculation come about, it is important for taxpayers to keep a tab on FAQs and important documents released by the government to aid the common man. You can track all the important documents related to the new income tax regime and the New Income Tax Bill here: Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
