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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
Time of India
21-07-2025
- Business
- Time of India
Parliamentary panel recommends ease in refunds to small tax payers if IT return not filed in due time
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. 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 Explore courses from Top Institutes in Select a Course Category MCA Public Policy Leadership Technology Digital Marketing Design Thinking Degree PGDM Product Management CXO Data Science Data Science others Artificial Intelligence Finance Project Management Healthcare MBA healthcare Others Cybersecurity Management Operations Management Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details The Income-Tax Bill, 2025, was tabled in Parliament in February and was referred to the Select Committee for a detailed examination. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo 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 report. To 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 date. Live Events The law should not compel a return merely to avoid penal provisions for non-filing. 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 time. To 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. Other recommendations of the committee include aligning definition of micro and small enterprises with the MSME Act . For 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. The report also recommended amendments in the bill for clarity on advance ruling fees , TDS on provident funds , low-tax certificates, and penalty powers.
