The Finance Minister Nirmala Sitharaman today i.e. August 11, 2025 introduced the Taxation Laws (Amendment) Bill, 2025 in the Lok Sabha, seeking changes to the Income-tax Act, 1961 and the Finance Act, 2025. The legislation aims to implement three key reforms:
- Unified Pension Scheme Tax Relief – New provisions exempt certain payouts from the Unified Pension Scheme from income tax, including up to 60% of the corpus at superannuation or voluntary retirement. It also specifies taxation rules for amounts withdrawn and conditions for transfers within pension funds.
- Saudi Arabia Investment Benefits – The Bill extends tax exemptions under Section 10(23FE) to the Public Investment Fund of Saudi Arabia and its wholly owned subsidiaries investing in India, recognising a bilateral understanding between the two nations.
- Block Assessment Amendments – Changes to search and seizure provisions refine the treatment of pending assessments and reassessments during search operations, aiming for greater clarity and consistency in the block assessment framework.
The Finance Ministry stated that the amendments will not entail significant additional government expenditure beyond existing administrative costs. The Bill carries the President’s recommendation under Articles 117 and 274 of the Constitution, paving the way for parliamentary consideration.
The Complete Bill can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/08/taxation-eng811202522604PM.pdf
