Income Tax Act

I-T Bill may not impact revenue collection: MoS finance Pankaj Chaudhary

The Bill retains existing technological reforms, including initiatives such as pre-filled income tax returns (ITRs), the Annual Information Statement, and faceless proceedings

Social media accounts accessed only in search, survey ops: I-T official

The new Income Tax Bill prescribes the existing process for tax authorities to gain access to the digital space or a computer device only during search and survey operations, and it is not aimed to breach the online privacy of common taxpayers even if their case lands into scrutiny, a top I-T department official said Monday. The powers for such a coercive action "already existed" in the 1961 Act, and these have only been reiterated in the Income Tax Bill of 2025, he said. The official rejected claims made in some reports and opinion pieces that the tax authorities have been granted "additional" powers to breach the passwords of electronic records, including email, social media handles and Cloud storage space of the taxpayers. "Such reports are nothing but fear mongering. The tax department is not into snooping of social media accounts or online activities of a taxpayer. "These powers are only to be executed during the course of a search or survey operation, and that too when the ..

Over 30k taxpayers declare foreign assets worth ₹29k cr in CBDT's campaign

Over 30,000 taxpayers have revised their I-T returns or filed belated returns and declared additional foreign assets and income of more than Rs 30,000 crore, Government sources said on Thursday. In line with its 'trust-first' approach, the Central Board of Direct Taxes (CBDT) had on November 16 last year, launched an awareness campaign under which messages were sent to taxpayers who had not disclosed high-value foreign income or assets in their ITRs for AY 2024-25. SMSes and emails were sent to 19,501 taxpayers with high foreign account balances or significant foreign income from interest or dividends above a specified threshold. These communications requested taxpayers to revise their Income Tax Returns (ITRs) to reflect their foreign assets and income accurately. Sources said 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed belated returns for AY 2024-25, declaring foreign assets worth Rs 29,208 crore and additional foreign income of Rs 1,089.88 crore. Also, 6,734

Experts intrigued by inclusion of electoral bonds in new Income-Tax Bill

Experts are intrigued by the new Income Tax Bill, 2025 retaining provisions related to electoral bonds, which were rendered unconstitutional by the Supreme Court last year, saying it could be because of legislative oversight or the government's intention to bring it back in some other form. Electoral bonds have been mentioned in the new Income Tax Bill's Schedule VIII which deals with 'Income not to be included in the total income of political parties and electoral trusts'. In a judgement passed on February 15 last year, the Supreme Court had scrapped the Centre's electoral bonds scheme of anonymous political funding, calling it "unconstitutional" as it was "violative" of the right to freedom of speech and expression and right to information. Under the existing Income Tax Act, 1961, donations received from companies and individuals through electoral bonds are exempt in the hands of political parties. The government has brought in a new Income Tax Bill to replace the 64-year old I-T

ICSI, ICMAI demand expansion of accountant's definition in I-T Bill

Apex bodies of company secretaries and cost accountants have urged the government to include these professionals under the definition of 'accountant' in the Income Tax Bill, 2025. The Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India (ICMAI), both set up under Acts of Parliament, have demanded that their members be treated as accountant in the bill. They come under the corporate affairs ministry. ICSI has around 75,000 members while ICMAI has about 1 lakh members. In a release on Monday, ICSI said that company secretaries should be included in the definition of 'accountant' as outlined in Section 515(3)(b) of the bill. "The omission is seen as a missed opportunity in recognising company secretary's vital role in the financial and compliance landscape of the country," the release said. According to the institute, it remains committed to advocating for the recognition of company secretaries as integral professionals in the taxation syste

The new Income Tax Bill FAQs: I-T department answers key questions

The simplified Income Tax Bill, which is half the size of the 1961 Income Tax Act, seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation, the Income Tax department said on Thursday. The new bill, introduced in the Lok Sabha, has a word count of 2.6 lakh, lower than 5.12 lakh in the I-T Act. The number of sections is 536, as against 819 effective sections in the existing law. The number of chapters has also been halved to 23 from 47, according to the FAQ issued by the I-T department. The Income Tax Bill 2025, has 57 tables, compared to 18 in the existing Act and removed 1,200 provisos and 900 explanations. Finance Minister Nirmala Sitharaman, while introducing the Bill in the Lok Sabha, had said that "substantial changes" have been made in the Bill. The number of words have been halved from 5.12 lakh, and sections reduced from 819 to 236. Following introduction, the Bill was referred to the select committee of the Lok Sabha and mandated to sub

Income Tax Bill 2025 to replace 1961 Act, introduces concept of 'tax year'

Deductions from salaries, such as standard deduction, gratuity, and leave encashment, have now been consolidated in one section instead of being scattered across various sections

Govt lists Income-Tax Bill, 2025 for introduction in Lok Sabha on Feb 13

The government has listed a bill to consolidate and amend the law relating to income-tax for introduction in the Lok Sabha on Thursday. According to the agenda circulated by the Lok Sabha secretariat on Wednesday, Finance Minister Nirmala Sitharaman will introduce the Income-Tax Bill, 2025. The much-anticipated Bill will replace terminologies like assessment and previous year with easier to understand 'tax year' as part of move to simplify language while removing provisos and explanations.

New Income Tax Bill vs Old: Increased sections, fewer pages, easier words

While the new Income Tax Bill does not appear to bring in major policy changes, it introduces several structural and linguistic adjustments aimed at simplifying tax laws

New Income Tax Bill 2025 proposes 'tax year' concept, easier terminologies

The new legislation will replace the Income Tax Act of 1961. Once passed, it will be called the Income Tax Act, 2025

Income Tax Bill 2025: Deductions on salaries, pension & gratuity explained

The Bill proposes a revised tax structure for individuals, Hindu undivided families, and certain associations

Hope to introduce new income tax bill in Lok Sabha next week: FM Sitharaman

Finance Minister Nirmala Sitharaman on Saturday said she is likely to introduce the new income tax bill, which will replace the six-decade-old I-T Act, in the Lok Sabha in the coming week. After introduction in the Upper House, the bill will be sent to a parliamentary standing committee for scrutiny. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the bill on Friday. "Yesterday, the Cabinet cleared the New Income Tax proposal, I hope to have it introduced in the Lok Sabha in the coming week. Post that it will go to a committee," Sitharaman said a media briefing after addressing the post-Budget customary meeting with the central board of directors of the Reserve Bank of India (RBI). The bill will again go to the Cabinet after the parliamentary committee gives its recommendations on it. After Cabinet approval, it will again be introduced in Parliament. "I still have three critical stages to pass through," Sitharaman said to the query regarding rollout of the new

Transformative direct tax reforms in Budget 2025 for middle class empowerment

The reforms are part of the Government's broader strategy to stimulate consumption, enhance ease of doing business and boosting economic growth

Budget 2025: Nirmala Sitharaman to unveil new Income Tax Bill next week

Sitharaman reiterated the Finance Ministry's commitment to a taxpayer-friendly approach, stating, "The tax department will trust first, scrutinise later," as she announced the upcoming income tax code

Union Budget 2025: Is the new Direct Tax Code replacing the Income Tax Act?

Sebi permits ICEX to exit bourse business after recognition withdrawn

Markets regulator Sebi on Tuesday allowed the Indian Commodity Exchange (ICEX) to exit the exchange space after its recognition was withdrawn over two years ago. The move comes after the exchange fulfilled regulatory requirements. Additionally, the regulator has directed ICEX to comply with its tax obligations under the Income Tax Act, 1961; change its name and not to use the expression "stock exchange" and maintain database of all transactions on its platform for the previous years among others. In an exit order, Sebi said it has reviewed ICEX's valuation report, compliance submissions and undertakings. The bourses declared all known liabilities and assured Sebi it had no undisclosed third-party liabilities. The exchange also undertook full responsibility for any future financial claims that may arise. Accordingly, the Securities and Exchange Board of India (Sebi) has permitted "the exit of the ICEX as a stock exchange and thus the consequent withdrawal of recognition granted to

CBDT extends income tax return filing deadline for FY24 to Dec 15

Tax authorities have extended the income tax return filing deadline by another 15 days to December 15 for the financial year 2023-24. The due date for furnishing the return of income under section 139(1) of the Income-tax Act, 1961 in the case of an assessee who is required to furnish a report referred to in section 92E, is November 30. The Central Board of Direct Taxes has now extended the deadline to December 15, 2024 for the assessment year 2024-25, an official order said. The income tax return filing deadline has been extended for taxpayers who have international transactions and are required to furnish reports under Section 92E.

CBDT allows tax officials to waive or reduce interest due from taxpayers

The income tax department has allowed tax officials to either waive or reduce interest payable by a taxpayer, subject to specified conditions. Under the Income Tax Act Section 220 (2A), if a taxpayer fails to pay the tax amount specified in any demand notice, he/she is liable to pay interest at 1 per cent per month for the period of delay in making the payment. The Act also empowers Principal Chief Commissioner (PrCCIT) or Chief Commissioner (CCIT) or Principal Commissioner (PrCIT) or Commissioner rank officers to reduce or waive the amount interest due to be paid. The Central Board of Direct Taxes (CBDT) through a circular dated November 4 has specified the monetary threshold of the interest that can be waived or reduced by the tax officers. Accordingly, PrCCIT rank officer can decide on reducing or waiving interest due of over Rs 1.5 crore. For interest due above Rs 50 lakh to Rs 1.5 crore, CCIT rank officer will decide on the waiver/reduction, while PrCIT or Income Tax ...

Income tax dept receives 6,500 suggestions on review of income tax act

The income tax department has received 6,500 suggestions from stakeholders over the past month on review of the Income Tax Act. Finance Minister Nirmala Sitharaman on Monday chaired a meeting on the Budget announcement of a comprehensive review of the Income Tax Act, 1961. The meeting was attended by Revenue Secretary Sanjay Malhotra, Secretary, Central Board of Direct Taxes (CBDT) chairman Ravi Agarwal, and senior CBDT officials. In a post on X, the finance ministry said that Malhotra informed the Finance Minister that 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act. These committees have actively engaged in numerous meetings 'both in person and via VC' with domain experts to collaboratively explore and recommend improvements to the Act. "During the meeting, the Revenue Secretary also apprised FM Smt. @nsitharaman that 6,500 valuable suggestions have been received through the portal since it was opened on 6 October 2024, ...

Over 3.5 mn I-T audit reports filed on e-filing portal up to Oct 7: FinMin

The finance ministry on Wednesday said more than 34.84 lakh audit reports, including about 34.09 lakh Tax Audit Reports (TARs), have been filed for assessment year 2024-25 on the e-filing portal till October 7. The income tax department had extended the date for filing the audit report from September 30 to October 7. There is an increase in the filing of TARs for the AY 2024-25 by around 4.8 per cent compared to the filings of TARs on the due date for AY 2023-24. "To assist taxpayers, the department conducted extensive outreach programmes through emails, SMSs, webinars, social media campaigns and messages on the Income Tax portal to create and raise awareness among the taxpayers about filing TARs and other audit forms by the due date. Various user awareness videos were uploaded on the Income Tax portal to provide guidance," the ministry said in a release. It further said that these concerted efforts have been helpful to taxpayers and tax professionals in timely compliance in filing