Latest news with #Income-TaxBill2025
Mint
6 days ago
- Business
- Mint
New I-T Bill: Finance Ministry clarifies interest on advance tax shortfall — check revision here
The Finance Ministry has on August 12 notified a corrigendum to the new Income-Tax Bill 2025, which clarifies the interest to be charged on short payment of advance tax by a taxpayer, according to a PTI report. This corrigendum provides for 3 per cent interest on short payment of advance tax, and aligns the new Bill's clause with the existing provisions in the Income Tax Act, 1961. Taxpayers having a tax liability of ₹ 10,000 or more have to pay advance tax in four instalments — June 15, September 15, December 15 and March 15. Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP told PTI that as per the corrigendum to Clause 425 of the Income-tax (No 2) Bill, 2025, the interest provision for shortfall in advance tax payment has now been aligned with that under the Income-tax Act, 1961. 'If there is a shortfall in remittance of advance tax even for a day beyond the statutory quarterly due date, interest is charged for a minimum of 3 months,' he stated. As per clause 425 of the Income-tax (No. 2) Bill, 2025, passed by the Lok Sabha on August 11, if the advance tax shortfall is made good by the next day of the quarterly due date, interest would be charged for one month at 1 per cent. The provision was not in alignment with the current tax laws, Jhunjhunwala said, adding that 'this ambiguity has now been restored and aligned with the existing provisions itself'. The Lok Sabha on August 11, passed the modified new Income Tax Bill, 2025 and the Taxation Laws (Amendment) Bill, 2025, shortly after Finance Minister Nirmala Sitharaman tabled the revised version in Parliament. Now, the Bill must be passed by the Rajya Sabha to replace the current Act, and then it will seek the President's nod. Once enacted, the new I-T Bill will replace the archaic six-decade-old income tax law. The legislation will make tax law simple by reducing the number of chapters and wordage.
Economic Times
21-07-2025
- Business
- Economic Times
Parliamentary panel recommends ease in refunds to small tax payers if IT return not filed in due time
Representative image. Synopsis A parliamentary panel has suggested key changes to the Income-Tax Bill 2025, focusing on clarity and alignment with existing laws. The recommendations include easing refund rules for small taxpayers, modifying property deduction calculations, and clarifying definitions for non-profits. These changes aim to reduce ambiguity and provide relief to taxpayers. The report of the parliamentary panel on the new Income-Tax Bill was presented in Lok Sabha on Monday. In its report, the panel has suggested important changes to tighten definitions, remove ambiguities, and align the new law with existing frameworks. ADVERTISEMENT The panel examined the Income-tax Bill 2025, which seeks to simplify language and structure of the Income Tax Act 1961 and submitted its report The Income-Tax Bill, 2025, was tabled in Parliament in February and was referred to the Select Committee for a detailed examination. The Committee in its 4,584 page report, identified several drafting corrections based on stakeholder suggestions, which they believe are essential for clarity and unambiguous interpretation of the new bill. The parliamentary panel has made a total of 566 suggestions/recommendations in its give a significant relief to tax payers, the committee has suggested change the provision which disallows refunds, if income tax returns are filed beyond the due law should not compel a return merely to avoid penal provisions for non-filing. ADVERTISEMENT The committee suggested removing the clause of mandatory requirement of filing return to claim refund by small tax payers whose income falls below the taxable threshold but from whom tax has been deducted at source. Flexibility should be given to such tax payers and they should be allowed to claim refund even in cases where the return is not filed in due give relief to property owners, the committee suggested that the standard 30 per cent deduction should be computed on the annual value of the property after deducting municipal taxes and to ensure that deduction for pre-construction interest should be given for let-out properties along with self-occupied ones as given in the existing IT Act. ADVERTISEMENT Other recommendations of the committee include aligning definition of micro and small enterprises with the MSME non-profit organisations, the committee asked for clarification over the terms 'income' vs 'receipts', anonymous donations, and the removal of the deemed application concept. The panel asked for these to be fixed to avoid legal disputes. ADVERTISEMENT The report also recommended amendments in the bill for clarity on advance ruling fees, TDS on provident funds, low-tax certificates, and penalty powers. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
