| Aspect | Details |
|---|---|
| Event | Union Finance Minister Nirmala Sitharaman withdraws the old draft of the Income Tax Bill, 2025, and introduces a revised version in Parliament. |
| Key Figures | Nirmala Sitharaman, Select Committee, Central Board of Direct Taxes (CBDT) |
| Main Objective | Modernize and simplify India's direct tax framework, replacing the Income Tax Act, 1961. |
| Reason for Withdrawal | - Drafting inconsistencies and technical errors- Terminology clarifications- Extensive stakeholder and committee feedback (285 recommendations) |
| Key Features | - Simplified language- Organized into 536 sections and 16 schedules- Introduction of "Tax Year" concept- Digital-first approach- No immediate tax slab changes |
| Major Recommendations | - Claim refunds on late returns- Reintroduction of Section 80M for inter-corporate dividends- NIL-TDS facility- Removal of deemed rent tax for vacant properties |
| Top Changes | 1. Refund on late returns2. Section 80M reintroduction3. NIL-TDS facility4. No deemed rent tax5. Clear 30% deduction after municipal taxes6. Home-loan interest for let-out properties |
| Impact | - Simplification and transparency in tax compliance- Reduced litigation- Support for Digital India- Enhanced investor confidence |
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