New Income Tax Bill 2025

Govt withdraws earlier Income-Tax Bill 2025; new version coming August 11 with key updates. Here’s what’s changed and why.

Why Withdraw the First Bill?

The first draft, introduced on Feb 13, was withdrawn after a Parliamentary Select Committee recommended 285 changes for clarity, consistency, and easier language.

New Income Tax Bill 2025

What is this new tax bill all about

The new draft keeps most earlier provisions but updates language, fixes missing clauses, aligns phrases, and corrects cross-references.

New Income Tax Bill 2025

Tax Refund Relief

Late ITR filers can now claim refunds. The earlier version denied refunds if returns were filed after the due date.

New Income Tax Bill 2025

80M Dedication Restored

Fill in some Companies using the special tax rate under Section 115BAA can once again claim Section 80M deduction on inter-corporate dividends.

New Income Tax Bill 2025

No Tax Deduction at Source

The Bill allows taxpayers to obtain Nil TDS certificates under specific conditions, ensuring no unnecessary tax deduction.

New Income Tax Bill 2025

Religious Trust Exemption

New Income Tax Bill 2025

Anonymous donations to purely religious trusts will be tax-exempt. No exemption if the trust also runs schools, hospitals, or other social services.

Fully Digital & Faceless

New Income Tax Bill 2025

The Bill promotes a digital, automated, and faceless tax process, designed for convenience and to reduce corruption.

No Change in Capital Gains Tax

Despite speculation, the Income Tax Department clarified there’s no change in tax rates — the focus is on simplification, not rate hikes.

New Income Tax Bill 2025

What This Means for You

Simpler rules, restored deductions, and more taxpayer-friendly provisions are coming. The revised Bill will be tabled on August 11.

New Income Tax Bill 2025