The motive of the Income Tax Bill, 2025, is to make the income tax return (ITR) filing more structured and user-friendly. The proposed changes focus on better clarity and accessibility with streamlined provisions for taxpayers, exempt entities, and return deadlines. Below is the way the new framework impacts taxpayers-
Simplified Guide to ITR Filing Obligations
Taxpayers u/s 139 of the Income-tax Act, 1961, directed to file returns are listed across multiple sub-sections, which makes compliance cumbersome. The new Bill consolidates all categories under Section 263(1)(a) into a single provision, making it easier for taxpayers to identify their filing obligations.
Exempt Entities Still Need to File ITR
Even when the entity is entitled to tax exemption then the same should still furnished the Income tax return if its total income (before exemptions) surpasses the basic exemption limit. The same rule stays unchanged to keep the tax transparency.
No Amendment in ITR Filing Deadlines
For various classes of taxpayers, the due date of filing stays the same. But these deadlines are now organized in a tabular format for effective readability and reference, lessening confusion during compliance.
No Changes in Belated, Revised and Updated Return Remain Unchanged
The rules controlling the belated returns, revised returns, and updated returns stayed unchanged. The same comprises the provisions introduced under the Finance Act 2025 ensuring the continuity in the process of tax compliance.
Main Insight
The Income Tax Bill, 2025, with these amendments, has the objective of making tax compliance easier and more efficient without changing the core provisions. The taxpayers could anticipate greater clarity, reduced complexity, and enhanced ease of filing while fulfilling their tax obligations.
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