Parliamentary Select Committee releases report on Income Tax Bill, 2025

Main suggestions

Maintained the authorities of tax officials under the updated IT bill: The Bill includes clauses for access, forcibly if required, the social networks and personal emails in retrieval and confiscation activities.

Revising definitions: Harmonizing definitions for "capital asset," "infrastructure capital company," and "micro and small." "businesses" in accordance with existing regulations.

Support for businesses and startups: More straightforward R&D deduction guidelines, tax incentives for companies managing biodegradable waste, and clarity regarding the definitions of "parent company" and "status" in tax appeals.

Regarding the Income Tax Act, 2025

It aims to substitute the Income-Tax Act, 1961. The legislation seeks to clarify the wording and eliminate unnecessary clauses of the legislation.

Main elements encompass:

Decrease Size: The legislation eliminates 283 sections and 24 chapters from the current 1961 Act.

Language Simplification: Use 'tax year' instead of current terms such as 'financial year' and ‘evaluation year’.

Provisions for Virtual Digital Assets: Establishes definitions for "virtual digital asset" and "electronic mode" alongside regulations on their taxes.

Other: No significant alterations to tax policies, no adjustments to tax rates, maintaining stability for taxpayers, Consolidation. of modifications, etc .