The Finance Minister, Smt. Nirmala Sitharaman introduced the Income-tax Bill 2025 (ITB) in Parliament on February 13, 2025, bringing significant changes. This article highlights the top 50+ key changes in ITB, including:
‣ Modifications in Terminology
‣ Taxation of NPOs
‣ Business Income Deductions
‣ Capital Gains
‣ Procedural Reforms in Assessments, Reassessments, and Tax Compliance
Major Key updates include:
‣ Replacement of the term "previous year" with "tax year"
‣ A new taxation framework for Non-Profit Organizations (NPOs)
‣ Exclusion of GST from the cost of assets for input tax credit claimants
‣ Revised reassessment provisions with extended limitation periods
‣ Expanded scope of search, seizure, and survey powers
‣ New regulations on tax deductions, appeals, and penalties
‣ Introduction of digital assets into tax liability and compliance
Authored by Taxmann's Advisory & Research Team | Income Tax
