Saralnama
President Droupadi Murmu has given assent to the Income-tax Bill, 2025, which replaces the Income-tax Act of 1961, the Finance Ministry announced on August 21. The new law aims to create a simpler, transparent, and compliance-friendly direct tax system. The Bill was passed by the Lok Sabha without debate and returned by the Rajya Sabha after brief discussion and Finance Minister Nirmala Sitharaman’s reply. Key provisions include deductions under Section 80M for companies opting for the new tax regime, allowing family members to claim deductions on commuted pension and gratuity, and clear separation of Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT), with AMT applicable only to non-corporates claiming deductions. Limited Liability Partnerships (LLPs) earning only capital gains income are exempt from AMT if no deductions are claimed. The law introduces flexibility for refund claims when returns are filed late and simplifies rules on carry-forward and set-off of losses. Taxation rules on anonymous donations align with previous provisions, and exemptions extend to mixed-object registered non-profits. The Bill is described as a landmark reform in India’s direct tax framework. (Updated 23 Aug 2025, 15:10 IST; source: link)