Lok sabha today passed the income tax law (No. 2), 2025, and a draft tax law (amendment), which represents a major reform of the tax system. The former seeks to replace the income tax law of 1961, while the latter gives tax exemptions to the unified pension scheme.
Both projects were approved by voting without discussion, amid strong opposition protests. Finance Minister Nermalla Sitraman re -submitted the revised income tax bill earlier in the day, after he withdrawn to integrate recommendations from the chosen committee.
“The draft law seeks to unify and amend the law on income tax and will replace the income tax law, 1961”, during the presentation of the revised draft.
The government said that almost “all of them” recommendations from the chosen committee had been accepted, as well as additional proposals from the stakeholders. These changes include formulating corrections, replacing phrases, and clarifying legal provisions.
“The revised bill addresses these gaps to simplify the interpretation, reduce conflicts, and enhance fairness,” said Gori Puri, a partner in the Chardol Amarshand Mandas, said that the review shows the response to the comments.
Dennish Cancer, CEO of Dhuva Advisors, welcomed the amendments: “There were a number of judgments that were presented to acting … and it was now accepted in the draft law today.”
The main improvements include removal of minimal alternative taxes on LLPS, relief to charitable funds, and the most obvious rules on conversion prices and associated institutions.
Commenting on the provisions related to retirement pensions, Rajish Gandhi of Deloitte indicated that it is still very similar to the current laws, but it suggested that the government “could consider industry suggestions including the extension of tax benefits to the preparation of companies before 2021.”
It is expected that the adopting the revised invoice will improve, reduce litigation, and enhance taxpayer confidence across sectors.
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