Government Releases Section-Wise Comparison Table and FAQs on the Income-Tax Bill 2025

News, dated 13-02-2025

The government has released a detailed section-wise comparison table on the Income-tax Act, 1961, and the proposed Income-tax Bill, 2025. A comprehensive set of Frequently Asked Questions (FAQs) has also been released to clarify the changes introduced in the new Bill.

The following clarifications have been issued by the Govt. in the FAQs:

(a) The Income Tax Bill 2025 aims to remove redundant provisions, effectively reducing its length by nearly half.

(b) Keywords/phrases, especially where courts have given rulings, have been retained with minimal modifications.

(c) Language has been simplified by the use of short sentences to the extent possible.

(d) Provisos (more than 1200) and Explanations (more than 900) have been removed, with their simplified content placed as sub-sections or clauses.

(e) Sections have been translated into rows or sub-rows in tables, reducing the number of words and bringing clarity.

(f) Provisions have been made clear to minimise the scope for multiple interpretations. The provisos and explanations have been removed, and simplified content has been placed as sub-sections and clauses.

(g) Provisions related to international taxation have been dealt with broadly to ensure tax certainty.

(h) NGO chapter has been made more comprehensive with the use of plain language.

(i) Exemption sections, for example, section 10 in the present Act, have been made simpler through tables and placing a large number of provisions in Schedules.

(j) Formulae and tables have been used to enhance clarity wherever feasible.

(k) Provisions involving the same issues and definitions, which were present in different chapters in the existing Act, have been consolidated to the extent possible.

Click Here To Read The Full Update