On 11th August 2025, the Lok Sabha passed the Taxation Laws (Amendment) Bill, 2025, amending the Income-tax Act, 1961.
The Bill introduced changes aimed to provide tax relief to Unified Pension Scheme subscribers, streamline block assessment proceedings, extend the higher standard deduction in the new tax regime, and widen exemptions for foreign sovereign funds.
Key Amendments –
‣ Unified Pension Scheme (UPS) – New exemptions for payouts under UPS & clarity on taxation of withdrawals
‣ Block Assessments – Any proceedings started after a search but before the block assessment order will also abate
‣ Higher Standard Deduction – ₹75,000 deduction now available for AY 2026–27 in the new tax regime
‣ Saudi PIF Exemption – Section 10(23FE) benefits extended to Saudi Arabia’s Public Investment Fund & subsidiaries
