New Delhi, Aug 12
The Finance Ministry has issued a corrigendum to the Income Tax Bill, 2025, clarifying the interest applicable on short payment of advance tax. The amendment specifies a 3 per cent interest rate on such shortfalls, bringing the clause in line with provisions under the Income Tax Act, 1961.
The amendment specifies a 3 per cent interest rate on such shortfalls, bringing the clause in line with provisions under the existing act.
The Income Tax Bill, 2025 — passed by the Lok Sabha on Monday — is set to replace the 60-year-old income tax law, with a focus on simplification through fewer chapters and reduced wordage.
The key features of the Income Tax Bill, 2025 include the following:
- Companies that have chosen the new regime can also take advantage of deductions under Section 80M of the 1961 Act (Clause 148 of the IT Bill, 2025).
- Clause 93 of the 2025 bill provides deductions for family member gratuities and commuted pensions.
- The AMT provisions only apply to non-corporations that have made deduction claims. LLPs with only capital gains income are not subject to AMT if there is no claim for a deduction.
- With the removal of Clause 263(1)(ix), flexibility has been granted to allow refund claims in situations where the return is not filed promptly