Latest news with #Section80M
India Today
4 days ago
- Business
- India Today
Parliament panel proposes revival of key tax relief for companies: Report
A key parliamentary panel has proposed reinstating a crucial deduction under the Income Tax Bill 2025, a move that could bring major relief to Indian companies by avoiding double taxation on inter-corporate dividends, The Economic Times panel has recommended reviving Section 80M of the old tax law, which allowed Indian firms to deduct from their taxable income any dividends received from other domestic companies. Its removal in the new draft bill had raised red flags across corporate India, especially for companies operating within multi-tier structures, where the same dividend income risked being taxed multiple government has accepted the recommendation, indicated the report. The proposal is among over 285 tweaks suggested by the parliamentary select committee, headed by MP Baijayant Panda, which unanimously adopted its report on the government greenlighting the bulk of the recommendations, the reformed tax legislation, meant to overhaul the six-decade-old Income Tax Act, is expected to be passed swiftly in the upcoming monsoon session of stakeholders had strongly lobbied for the return of Section 80M, arguing that its absence would increase tax burdens and discourage efficient corporate committee's report, which will be presented in the Lok Sabha on the first day of the session, reflects several such industry important recommendation involved reinstating language that clarifies residency status for Indians working abroad. The phrase 'for the purpose of employment' has been retained to remove any ambiguity in interpreting residency panel also proposed restoring provisions that allow the tax department to issue a nil withholding tax certificate for specific payments—another rollback of a clause originally removed in the draft may be noted that the panel chose not to alter core provisions of Section 247(1), which deals with searches and seizures, although this section witnessed the most debate during the committee's 36 sittings. Stakeholders who appeared before the panel also raised concerns over the faceless assessment mechanism and called for simplification of TDS rates and Income Tax Bill 2025, first introduced by Finance Minister Nirmala Sitharaman in February, aims to simplify and modernise the tax brings in a slew of changes, including presumptive taxation for non-residents, a revamped framework for business and professional income, strengthened anti-avoidance rules, and streamlined penalties and the committee's mandate was limited to refining the language of the bill rather than overhauling its core, the changes endorsed are expected to address ambiguities and prevent unintended consequences as India prepares to usher in a simpler, more contemporary tax regime.- Ends
Time of India
4 days ago
- Business
- Time of India
House Panel Proposal on Dividend in I-T Bill may Bring Relief to Cos
A parliamentary panel that reviewed the Income Tax Bill 2025 has recommended that a provision dealing with the deduction available for inter-corporate dividends be restored, a significant relief for India Inc, said people familiar with the deliberations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A parliamentary panel that reviewed the Income Tax Bill 2025 has recommended that a provision dealing with the deduction available for inter-corporate dividends be restored, a significant relief for India Inc, said people familiar with the parliamentary select committee unanimously adopted its report on Wednesday, recommending over 285 tweaks, which have been accepted by the government, they means that the biggest revamp of the six-decade-old income tax law is expected to pass quickly in the upcoming monsoon session of had made a strong pitch to the government and the parliamentary panel to restore Section 80M , reasoning that its omission would result in cascading and double taxation in multi-tier section allows Indian companies to deduct from taxable income dividends they get from another corporate entity. It helps avoid double taxation on the same dividend bill had removed the provision for companies availing of the 22% corporate tax slab. Indian companies have the option to pay 22% income tax if they don't avail of any exemptions and incentives since panel, headed by Baijayant Panda, will present its report to the Lok Sabha on the first day of the monsoon session of parliament on government has accepted most of the changes proposed by the committee, one of the persons told ET. The government has already listed the bill for consideration and passage in the upcoming key suggestion by the committee was the restoration of the language relating to residency for those going overseas to work. The previous wording — 'for the purpose of employment'— has been retained to clear up any ambiguity, the person said. Besides, the provision dealing with the issuance of a nil withholding the tax certificate by tax department in respect of certain payments has been panel has further simplified the language of a number of provisions to remove any lack of clarity, one of the persons said, adding that no substantive changes had been panel held 36 sittings and dealt with all 536 sections.'Maximum deliberations and discussions were on around Section 247(1), which deals with searches and seizure, but no major changes or amendments in the section were suggested,' the person of those who appeared before the panel raised concerns about faceless assessment and sought a reduction in the number of rates for tax deducted at source and further simplification of the regime, the person minister Nirmala Sitharaman had on February 13 introduced the Income Tax Bill 2025 to replace the old law with a simple, easy-to-understand one that aimed to reduce ambiguity and bill had introduced presumptive taxation for non-residents, revised treatment for business and professional income, and strengthened General Anti-Avoidance Rules (GAAR), while streamlining the penalty and compliance framework. It also clubbed the tabulation of deductions from salaries, such as standard deduction and gratuity, in one experts said that the select committee discussed recommendations made by various sections of society.'As the select committee has had the unique opportunity of receiving many salutary suggestions concerning major overhaul of many existing provisions in the tax law, it is hoped that finance ministry will give due consideration to these suggestions as well and bring about these far-reaching changes in due course through its Budget presentations,' said Sudhir Kapadia, senior advisor, the remit of the select committee was restricted to further clarifying or improving the language of the bill, as opposed to suggesting fundamental changes in provisions, it is expected that the changes suggested in their report will only address any inadvertent omissions or lack of clarity in language, he said.
Economic Times
4 days ago
- Business
- Economic Times
Parliamentary panel proposal on dividend in IT bill may bring relief to India Inc
A parliamentary panel that reviewed the Income Tax Bill 2025 has recommended that a provision dealing with the deduction available for inter-corporate dividends be restored, a significant relief for India Inc, said people familiar with the parliamentary select committee unanimously adopted its report on Wednesday, recommending over 285 tweaks, which have been accepted by the government, they said. This means that the biggest revamp of the six-decade-old income tax law is expected to pass quickly in the upcoming monsoon session of Parliament. Industry had made a strong pitch to the government and the parliamentary panel to restore Section 80M, reasoning that its omission would result in cascading and double taxation in multi-tier structures. The section allows Indian companies to deduct from taxable income dividends they get from another corporate entity. It helps avoid double taxation on the same dividend income. The bill had removed the provision for companies availing of the 22% corporate tax slab. Indian companies have the option to pay 22% income tax if they don't avail of any exemptions and incentives since panel, headed by Baijayant Panda, will present its report to the Lok Sabha on the first day of the monsoon session of parliament on government has accepted most of the changes proposed by the committee, one of the persons told ET. The government has already listed the bill for consideration and passage in the upcoming key suggestion by the committee was the restoration of the language relating to residency for those going overseas to work. The previous wording — 'for the purpose of employment'— has been retained to clear up any ambiguity, the person said. Besides, the provision dealing with the issuance of a nil withholding the tax certificate by tax department in respect of certain payments has been panel has further simplified the language of a number of provisions to remove any lack of clarity, one of the persons said, adding that no substantive changes had been panel held 36 sittings and dealt with all 536 sections.'Maximum deliberations and discussions were on around Section 247(1), which deals with searches and seizure, but no major changes or amendments in the section were suggested,' the person of those who appeared before the panel raised concerns about faceless assessment and sought a reduction in the number of rates for tax deducted at source and further simplification of the regime, the person minister Nirmala Sitharaman had on February 13 introduced the Income Tax Bill 2025 to replace the old law with a simple, easy-to-understand one that aimed to reduce ambiguity and bill had introduced presumptive taxation for non-residents, revised treatment for business and professional income, and strengthened General Anti-Avoidance Rules (GAAR), while streamlining the penalty and compliance framework. It also clubbed the tabulation of deductions from salaries, such as standard deduction and gratuity, in one experts said that the select committee discussed recommendations made by various sections of society. 'As the select committee has had the unique opportunity of receiving many salutary suggestions concerning major overhaul of many existing provisions in the tax law, it is hoped that finance ministry will give due consideration to these suggestions as well and bring about these far-reaching changes in due course through its Budget presentations,' said Sudhir Kapadia, senior advisor, the remit of the select committee was restricted to further clarifying or improving the language of the bill, as opposed to suggesting fundamental changes in provisions, it is expected that the changes suggested in their report will only address any inadvertent omissions or lack of clarity in language, he said.
Time of India
4 days ago
- Business
- Time of India
Parliamentary panel proposal on dividend in IT bill may bring relief to India Inc
Live Events Most Debates on Searches & Seizure Section (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel A parliamentary panel that reviewed the Income Tax Bill 2025 has recommended that a provision dealing with the deduction available for inter-corporate dividends be restored, a significant relief for India Inc , said people familiar with the parliamentary select committee unanimously adopted its report on Wednesday, recommending over 285 tweaks, which have been accepted by the government, they means that the biggest revamp of the six-decade-old income tax law is expected to pass quickly in the upcoming monsoon session of Parliament Industry had made a strong pitch to the government and the parliamentary panel to restore Section 80M , reasoning that its omission would result in cascading and double taxation in multi-tier section allows Indian companies to deduct from taxable income dividends they get from another corporate entity. It helps avoid double taxation on the same dividend bill had removed the provision for companies availing of the 22% corporate tax slab. Indian companies have the option to pay 22% income tax if they don't avail of any exemptions and incentives since panel, headed by Baijayant Panda, will present its report to the Lok Sabha on the first day of the monsoon session of parliament on government has accepted most of the changes proposed by the committee, one of the persons told ET. The government has already listed the bill for consideration and passage in the upcoming key suggestion by the committee was the restoration of the language relating to residency for those going overseas to work. The previous wording — 'for the purpose of employment'— has been retained to clear up any ambiguity, the person said. Besides, the provision dealing with the issuance of a nil withholding the tax certificate by tax department in respect of certain payments has been panel has further simplified the language of a number of provisions to remove any lack of clarity, one of the persons said, adding that no substantive changes had been panel held 36 sittings and dealt with all 536 sections.'Maximum deliberations and discussions were on around Section 247(1), which deals with searches and seizure, but no major changes or amendments in the section were suggested,' the person of those who appeared before the panel raised concerns about faceless assessment and sought a reduction in the number of rates for tax deducted at source and further simplification of the regime, the person minister Nirmala Sitharaman had on February 13 introduced the Income Tax Bill 2025 to replace the old law with a simple, easy-to-understand one that aimed to reduce ambiguity and bill had introduced presumptive taxation for non-residents, revised treatment for business and professional income, and strengthened General Anti-Avoidance Rules (GAAR), while streamlining the penalty and compliance framework. It also clubbed the tabulation of deductions from salaries, such as standard deduction and gratuity, in one experts said that the select committee discussed recommendations made by various sections of society. 'As the select committee has had the unique opportunity of receiving many salutary suggestions concerning major overhaul of many existing provisions in the tax law, it is hoped that finance ministry will give due consideration to these suggestions as well and bring about these far-reaching changes in due course through its Budget presentations,' said Sudhir Kapadia, senior advisor, the remit of the select committee was restricted to further clarifying or improving the language of the bill, as opposed to suggesting fundamental changes in provisions, it is expected that the changes suggested in their report will only address any inadvertent omissions or lack of clarity in language, he said.
