The government is set to amend the refund provision in the new Income Tax Bill, 2025, bringing relief to taxpayers, a report by the Business Standard said on June 16.
The controversial provision denied refunds if the taxpayers filed their returns after the deadline, BS said citing a top government official.
Section 433 of the new I-T bill says refund must be claimed by filing a return irrespective of whether it is late or not. However, section 263 (1)(a)(ix) of the bill contradicts the above-mentioned provision by saying the return must be filed on or before the deadline.
The new I-T bill, 2025 was introduced in the Parliament in February by Union finance minister Nirmala Sitharaman. The bill was sent to a select committee for examination. The panel is likely to submit the report of the panel on the first day of the monsoon session, BS said.
On June 14, Moneycontrol had reported that the panel may not suggest any major changes other than “simplification of language”.
The report, citing a top source, said the panel’s recommendations have been finalized and there are not significant changes.
The legislation seeks to repeal the Income Tax Act of 1961 and replace it with a simplified version. If passed, the new law will come into effect from April 1, 2026.
