The New Income Tax Bill 2025, which aims to replace the Income Tax Act 1961, seeks to simplify and simplify tax rules. We take a look at some tax aspects regarding the sale of property Carry Forward Of Losses From House Property If you have a loss from one house property, you can adjust it against income from another house property. If there’s still a loss after this, you can set it off against income from other sources, but only up to Rs 2 lakh a year. Any loss beyond Rs 2 lakh cannot be adjusted against other income in the same year. “The remaining loss (unabsorbed loss) can be carried forward for the next eight years, but it can only be adjusted against income from the house property in those years.
Read More →One of the primary concerns generated by the release of the new Income Tax Bill 2025 is whether late filers will be entitled to refunds when filing their Income Tax Return (ITR) beyond the deadline. The bill, slated to be implemented from FY2026-27, contains provisions that have created uncertainty regarding the entitlement of late filers to refunds. Major provisions in the new bill Clause 263(1)(a)(ix) of the new bill has been criticized by experts, which says that those who are claiming refunds should file their ITR within the stipulated due date. This is different from the existing Income Tax Act, 1961, where taxpayers can claim refunds even if they submit a delayed return by December 31 of the assessment year.
Read More →The Union Budget 2025-26 has introduced major changes to Tax Collected at Source (TCS), offering relief to Indian students aspiring to study abroad. These revisions aim to reduce the financial burden on families by lowering tax implications on foreign remittances under the Liberalised Remittance Scheme (LRS). Under this scheme, authorized dealers collect TCS when individuals transfer funds abroad. However, TCS is not an additional tax but an advance that can be adjusted against total income tax liability or refunded if overpaid. How This Benefits Students and Parents Education loan borrowers get full relief from TCS on tuition fee remittances, reducing financial burden. Families remitting personal savings still face 5% TCS on amounts exceeding Rs 7 lakh, but this is significantly lower than the 20% imposed on general remittances.
Read More →The new Income Tax Bill, 2025 contains some provisions which have created ambiguity regarding the eligibility for claiming tax refunds. To be specific, clause (ix) under ‘Section 263(1)(a)’ of the new Bill mandates that a taxpayer who intends to claim a refund, is required to file their Income Tax Return (ITR) within the “due date” (the date of the financial year immediately succeeding the relevant “tax year”). However, ‘Chapter XX’ of the new Bill dealing with refunds provides for interest on refunds even in cases where returns are filed “outside of the due dates”. There is also no restriction placed on claiming a refund in a revised or belated tax return, unlike in the case of an updated return, in the new Bill, say experts.
Read More →It seems that the proposed Income Tax Bill, 2025, has made a minor change in language with the residential status clause. Earlier, Indians who moved abroad ‘for the purpose of employment’ enjoyed a relaxation from Indian tax residency provisions namely 182 days instead of 60 days for others. While others had to satisfy the 60 days clause, but if these persons who moved abroad 'for the purpose of employment' stayed in India for less than 182 days in the current financial year then they would have been considered non-residents under the Income Tax Act, 1961. Now as per the proposed Income Tax Bill, 2025, the phrase mentioned above has been changed to Indians who moved abroad “for employment outside India”. Due to this change in language of the proposed Income Tax Bill, 2025, job-seekers, self-employed, professionals, etc may now fall outside the ambit of the relaxed Indian tax residency laws (182 days).
Read More →The Income Tax Bill, 2025, tabled in Parliament on Thursday, introduces changes for non-resident Indians (NRIs), particularly regarding capital gains, tax deducted at source (TDS), and tax recovery measures. “The Bill introduces more stringent measures for tax recovery from non-residents: Enhanced powers for tax authorities to access electronic records, including emails, social media accounts, and online banking information during searches. This aims to improve tax compliance and prevent evasion by leveraging digital footprints,” said Pallav Pradyumn Narang, partner, CNK (a legal firm). Under new provisions NRIs earning Rs 15 lakh or more annually in India will be classified as residents for tax purposes.
Read More →The Income-tax Bill, 2025 has been tabled in Parliament, marking a significant step toward simplifying the language and structure of the Income-tax Act, 1961. No major tax policy changes and no modifications of tax rates have been made in the Income-tax Bill, 2025. Overall, there will be 23 chapters instead of 47, and there will be 536 clauses in place of 819 sections. The Income Tax Bill 2025 has several aspects to be considered by the Non-Resident Indians (NRIs) as Clauses replace Sections. A non-resident Indian means an individual, who is not a resident and is (i) a citizen of India; or (ii) a person of Indian origin. Here are some key Clauses for NRI’s to take note of.
Read More →The simplified Income Tax Bill, which is half the size of the 1961 Income Tax Act, seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation, the Income Tax department said on Thursday. The new bill, introduced in the Lok Sabha, has a word count of 2.6 lakh, lower than 5.12 lakh in the I-T Act. The number of sections is 536, as against 819 effective sections in the existing law. The number of chapters has also been halved to 23 from 47, according to the FAQ issued by the I-T department.
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