The Lok Sabha as we speak handed the Revenue Tax (No. 2) Invoice, 2025, and the Taxation Legal guidelines (Modification) Invoice, marking a serious overhaul of the tax regime. The previous seeks to switch the Revenue Tax Act of 1961, whereas the latter grants tax exemptions to subscribers of the Unified Pension Scheme.
Each payments had been handed by voice vote with out debate, amid sturdy opposition protests. Finance Minister Nirmala Sitharaman reintroduced the revised Revenue Tax Invoice earlier within the day, following its withdrawal to include suggestions from the Choose Committee.
“The invoice seeks to consolidate and amend the legislation regarding income-tax and can substitute the Revenue Tax Act, 1961,” stated Sitharaman, whereas tabling the revised draft.
The federal government stated “virtually all” suggestions from the Choose Committee have been accepted, together with extra recommendations from stakeholders. These adjustments embrace drafting corrections, alignment of phrases, and clarification of authorized provisions.
Gouri Puri, Accomplice at Shardul Amarchand Mangaldas, stated the revision reveals responsiveness to suggestions: “The revised invoice addresses these gaps to simplify interpretation, cut back disputes, and promote equity.”
Dinesh Kanabar, CEO, Dhruva Advisors, welcomed the amendments: “There have been quite a few provisions in opposition to which representations had been made… these have now been accepted within the Invoice introduced as we speak.”
Key enhancements embrace the removing of Alternate Minimal Tax on LLPs, reduction to charitable trusts, and clearer guidelines on switch pricing and related enterprises.
Commenting on pension-related provisions, Rajesh Gandhi of Deloitte famous they continue to be broadly just like present legal guidelines however recommended the federal government “may have thought of trade recommendations together with extension of tax advantages to holding corporations setup previous to 2021.”
The passage of the revised invoice is predicted to enhance compliance, cut back litigation, and improve taxpayer confidence throughout sectors.
