What are some key changes in revised Income Tax Bill 2025 that may benefit taxpayers?
The Indian government has been working on revising the Income Tax Act, 1961, to make it more taxpayer-friendly and efficient. The revised Income Tax Bill 2025 aims to replace the decades-old act, and some of the proposed changes may benefit taxpayers in several ways. In this blog post, we will explore some of the key changes that have been introduced in the revised bill and how they may impact taxpayers.
Removal of provision denying refunds if ITR was filed after due date
One of the significant changes in the revised Income Tax Bill 2025 is the removal of a provision that denied refunds to taxpayers if their Income Tax Return (ITR) was filed after the due date. This provision was causing a lot of inconvenience to taxpayers who were unable to file their ITR on time due to various reasons. With the removal of this provision, taxpayers will now be eligible for refunds even if they file their ITR after the due date.
This change is expected to benefit taxpayers who may have been unable to file their ITR on time due to various reasons such as delays in receiving documents or errors in the returns. The removal of this provision will ensure that taxpayers receive their refunds without any delay or obstruction.
Exemption of anonymous donations to religious trusts
Another significant change in the revised Income Tax Bill 2025 is the exemption of anonymous donations to religious trusts. This change is expected to benefit religious trusts and organizations that receive anonymous donations. The exemption will allow these organizations to receive donations from individuals who wish to remain anonymous.
This change is expected to benefit the religious trusts and organizations as they will be able to receive donations without any hassle or restrictions. The exemption will also promote transparency and accountability in the donations received by these organizations.
Allowance of nil TDS certificates under certain conditions
The revised Income Tax Bill 2025 also proposes to allow taxpayers to avail nil TDS certificates under certain conditions. This change is expected to benefit taxpayers who may have been required to pay Tax Deducted at Source (TDS) on their income. The allowance of nil TDS certificates will reduce the burden of TDS on taxpayers and ensure that they do not have to pay unnecessary taxes.
This change is expected to benefit taxpayers who may have been required to pay TDS on their income. The allowance of nil TDS certificates will reduce the burden of TDS on taxpayers and ensure that they do not have to pay unnecessary taxes.
Other changes in the revised Income Tax Bill 2025
The revised Income Tax Bill 2025 also proposes several other changes that may benefit taxpayers. Some of the key changes include:
- Simplification of tax compliance: The revised bill proposes to simplify tax compliance by reducing the number of forms and returns that taxpayers need to file.
- Increase in tax exemption limit: The revised bill proposes to increase the tax exemption limit for individuals, which may benefit taxpayers who have a lower income.
- Reduction in tax rates: The revised bill proposes to reduce tax rates for certain categories of taxpayers, which may benefit taxpayers who are currently paying higher taxes.
Why was the earlier bill withdrawn?
The earlier Income Tax Bill 2025 was withdrawn by the Indian government after facing opposition from various quarters. The bill had proposed several changes to the income tax laws, including the introduction of a new tax regime and the removal of exemptions and deductions.
The government withdrew the bill after realizing that it had several flaws and was not in the best interest of the taxpayers. The government has now proposed several changes to the bill, including the removal of the provision denying refunds if ITR was filed after due date, exemption of anonymous donations to religious trusts, and allowance of nil TDS certificates under certain conditions.
Conclusion
The revised Income Tax Bill 2025 proposes several changes that may benefit taxpayers in several ways. The removal of the provision denying refunds if ITR was filed after due date, exemption of anonymous donations to religious trusts, and allowance of nil TDS certificates under certain conditions are some of the key changes that may benefit taxpayers.
The revised bill also proposes to simplify tax compliance, increase the tax exemption limit, and reduce tax rates for certain categories of taxpayers. The government has withdrawn the earlier bill and proposed several changes to ensure that the revised bill is more taxpayer-friendly and efficient.
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