The new Income Tax Bill 2025, set to be tabled in Parliament on Thursday, marks a historic moment in India’s tax landscape, as it will replace the current year legislation introduced way back in 1961. The bill, once passed, will come into effect from April 1, 2026. “Aimed at overhauling the nation’s tax system, the bill seeks to eliminate obsolete sections that have accumulated over decades. Its primary objective is to simplify the tax laws, ensuring they are more transparent, easier to interpret, and taxpayer-friendly. By replacing complex provisions with clearer provisions, it aims to reduce legal disputes and encourage voluntary tax compliance,” says Rohinton Sidhwa, Partner, Deloitte India.
Read More →The new Income Tax Bill, 2025 provides for a specific section which outlines the rules for determining profits and gains from construction contracts and service contracts for the purpose of computation of tax. In the I-T Act, 1961, the ‘Income Computation & Disclosure Standards’ (ICDS) were introduced as a separate section, distinct from the provisions governing profits and gains from business and profession. But the bill seeks to integrate the ICDS provisions within the broader framework of business and profession income, streamlining its application and interpretation, say experts. “This alignment is expected to enhance clarity and consistency in tax computation, reducing ambiguity in the treatment of income and ensuring uniform compliance across businesses,” said Amit Maheshwari, tax partner, AKM Global.
Read More →The New Income Tax Bill — to be called the Income-Tax Act, 2025, once passed – is set to be presented in Parliament on February 13, and aims to replace the six-decade-old Income Tax Act of 1961. It will extend to the whole of India and shall come into force on the 1st April, 2026. The Bill aims to simplify and modernize India’s tax structure, making compliance easier for taxpayers while ensuring a fair and transparent system. “Looking at the space occupied by the New Income Tax Bill, which is spread over 622 pages against the existing Income Tax Act which runs into 1647 pages, is itself a sign of attempt towards simplucation,” said Balwant Jain, a tax and investment expert. The new bill runs into 536 sections against 298 existing sections.
Read More →Social media influencers and digital content creators have become some of the highest-earning individuals in today’s economy, leveraging brand deals, sponsorships, and digital platforms to generate substantial income. From luxury brand collaborations to big-money endorsement deals, the influencer industry has grown into a powerhouse. However, with this success comes increased scrutiny—especially from tax authorities. Now, the Income Tax Bill, 2025 has proposed to bring influencers firmly under the tax net. Freebies, barter deals, and social media earnings will no longer go unnoticed, and influencers will be required to disclose and pay taxes on their income just like any other business. “The Income Tax Bill, 2025 does not explicitly mention ‘influencers’ or ‘brand partnerships,’ as far as direct tax is concerned, but its provisions could have a significant impact on digital content creators based on general tax principles and interpretations,” Siddharth Chandrashekhar, advocate and counsel, Bombay High Court and panel counsel for CBIC & CBDT, told BrandWagon Online.
Read More →https://www.pdicai.org/Docs/Notification-No-117-2024_21102024144452724.pdf
Read More →The CBIC on Friday said it has reduced compliance burden for customs cargo service providers (CCSPs) by reducing number of days for insurance of stored goods and removing licence renewal process for AEO-compliant entities. In a statement, the Central Board of Indirect Taxes and Customs (CBIC) said these measures aim to reduce operational costs and compliance burdens for CCSPs, that play a crucial role in handling of imported and exported goods. It would also improve efficiency of EXIM operations and facilitate global trade. The CBIC has notified reduction in the number of days for insurance of stored goods by amending the Customs Areas Regulations, 2009, which require CCSPs to insure goods stored in Customs areas for a period of 10 days in terms of Handling of Cargo. It has been notified to reduce it to 5 days as a trade facilitation measure. "This will enhance the cash flow for the entities by reducing the cost," the statement said.
Read More →An amnesty scheme for customs, reduction in tax rates for individuals and Limited Liability Partnership firms, easier tax compliance, fast tracking of faceless appeals and a dedicated dispute resolution mechanism top India Inc's wishlist for the next Budget submitted to the government. Representatives from all four key industry bodies, CII, FICCI, ASSOCHAM and PHDCCI, have put forth detailed recommendations with regard to the Budget, to be presented on February 1, 2025, in separate meetings held with top Finance Ministry officials. Industry body FICCI sought the introduction of an "Amnesty Scheme under Customs" as a one-time settlement scheme to clear past dues, arguing that it will help the industry to reduce the baggage of litigation. Similarly, Assocham has also pitched for the introduction of a comprehensive Tax Amnesty Scheme under Customs. "A one-time settlement scheme to clear past litigations can be considered by the Government, on the lines similar to Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 for pre-GST era indirect taxes and Vivad Se Vishwas for Income tax," Assocham stated.
Read More →From April 1, 2025 onwards, businesses with Aggregate Annual Turnover (AATO) greater than Rs 10 crore will not be allowed to report e-invoices older than 30 days on the date of reporting under the goods and services tax (GST). The reform will ensure on-time tax payment and will regulate the delays in reporting of tax invoices, streamlining the GST ecosystem as a whole. Earlier this time limit restriction was applicable for taxpayers with AATO greater than or equal to 100 crores. "From 1st April 2025, taxpayers with an AATO of 10 crores and above would not be allowed to report e-Invoices older than 30 days from the date of reporting on IRP portals," said an advisory issued late Tuesday, by the GST e-invoice systems. The e-Invoice System is for GST-registered people for uploading all the business-to-business (B2B) invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user.
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