Taxation Reforms are one of the key reforms to realize the vision of Viksit Bharat. In the words of the Hon’ble FM, the country aims to ensure that the new income-tax bill will carry forward the spirit of “Nyaya”. The new bill will be clear and direct in text with close to half of the present law, in terms of both chapters and words. It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation.
Under the guidance of Prime Minister Shri Narendra Modi, the Government has taken steps to understand the needs voiced by the people. The direct tax proposals include personal income tax reform with special focus on middle class, TDS/ TCS rationalization, encouragement to voluntary compliances along with reduction of compliance burden, ease of doing business and incentivizing employment and investment.
The provisions of Finance Bill, 2025 (hereafter referred to as ‘the Finance Bill’), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as ‘the Act‘), to continue reforms in direct tax system through tax reliefs, removing difficulties faced by taxpayers and rationalisation of various provisions.
With a view to achieving the above, the various proposals for amendments are organized under the focused heads:—
- Personal Income Tax reforms with special focus on middle class
- Rationalization of TDS/TCS for easing difficulties
- Encouraging voluntary compliance
- Reducing compliance burden
- Ease of doing business
- Employment and investment
Following important amendments have been proposed under Income Tax Laws in the Finance Bill vide Clauses 2 to 86, which shall, save as otherwise provided in the Finance Act, 2025, be deemed to have come into force on April 01, 2025 as per Clause 1(2)(a) of the Finance Bill.
The Complete PDF document can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/02/Key-Highlights-of-Proposed-Changes-under-Income-Tax-Law-in-Union-Budget-2025-26-for-easy-digest.pdf
