The new Income Tax Bill passed by the Lok Sabha on Monday, will allow individuals to claim tax deducted at source refunds even if they fail to file income tax return within due date.
The Income Tax (NO.2) Bill, which from April 1, 2026, will replace the Income Tax Act, 1961, was introduced by Finance Minister Nirmala Sitharaman and passed in the Lok Sabha amid din without a debate.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
The bill cuts down wordage and chapters by almost half and writes the clauses in simpler and easy to understand language.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
It does away with the confusing concepts of assessment year and previous year, replacing them with easier to understand 'tax year'.
The original Income Tax Bill, 2025, which was introduced in February, was withdrawn by the Finance Minister on Friday. Sitharaman on Monday came up with a revised bill incorporating 'almost all recommendations' of the Select Committee which had scrutinised the original bill.
The Select Committee had suggested that the government should modify the provisions relating to TDS claims by those who fail to file ITR before the stipulate due date.
According to the revised bill, individuals will be allowed to claim TDS refund even if their return of income is filed beyond the statutory timeline provided for filing of the original income-tax return.
Thus, the finance ministry has incorporated the provision of the existing Income Tax Act, 1961.
The Income Tax(No.2) Bill provides for 'nil' TCS on Liberalised Remittance Scheme (LRS) remittances for education purposes financed by any financial institutions.
Nangia Andersen LLP, Partner, Sandeep Jhunjhunwala said deductions in respect of certain inter-corporate dividends for companies opting for concessional rate of taxes have been re-introduced in line with the provisions of the existing Income Tax Act, 1961.
The provisions relating to the carry forward and set-off of losses have been appropriately amended and the reference to the beneficial owner has been omitted to align with Section 79 of the Act.
"By enabling refunds for belated returns and harmonising definitions of Micro and Small enterprise with allied statutes, the Bill reflects a balanced, pragmatic, and taxpayer-oriented approach," Jhunjhunwala said.
EY India, Tax Partner, Samir Kanabar said the revised bill addresses key industry concerns like dividend deductions, and the definition of 'associated enterprises'.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
