🚨 Income-tax Bill 2025 v. Income-tax Act 1961: Key Changes! 🚨
The Finance Minister, Smt. Nirmala Sitharaman, tabled the Income-tax Bill 2025 (ITB) in Parliament on 13th February 2025.
Here are some of the major changes compared to the Income-tax Act 1961 (ITA):
🔹 Definitions Consolidated – ITB streamlines key definitions like “accountant” and “convertible foreign exchange” in one place.
🔹 New Terminology – “Previous Year” is now “Tax Year”, starting from 1st April every year.
🔹 Residential Status Rule Tweaked – The phrase “for the purpose of employment outside India” is now “for employment outside India” for better clarity.
🔹 Overhaul for NPOs/Trusts – A new tax framework replaces old trust taxation, defining “Non-Profit Organisations (NPOs)” with over 20+ new provisions covering registration, taxation, corpus donation, compliance, and penalties.
🔹 Salary Deductions Change – No deduction for entertainment allowance for government employees.
