New Income Tax Bill 2025: In the first version of the Income Tax Bill, 2025, there was a provision of not giving refund for late filing of returns. This rule has been changed in the second version of the bill. According to the new version of the Income Tax Bill, 2025, refund will be available even if Income Tax Return (ITR) is filed late
The new version of the Income Tax Bill, 2025 was passed in the Lok Sabha on August 11. The new version includes two such provisions, which will greatly benefit taxpayers. In fact, after studying the first version of the bill, the Parliamentary Committee had advised the government to make 285 amendments in it. It is said that keeping in mind the interest of taxpayers, the government has accepted most of the recommendations.
New income tax rules will be implemented from April 1 next year
The 31-member parliamentary committee headed by BJP MP Baijayant Panda submitted its recommendations to the government on July 21. After this, the government introduced the new version of the Income Tax Bill, 2025 after amendment in the Lok Sabha on August 11. The new Income Tax Act is going to come into force from April 1, 2026.
Refund even if ITR is filed after the last date
According to the new version of the Income Tax Bill, 2025 , refund will be available even if Income Tax Return (ITR) is filed late. This means that even if a taxpayer files a return after the last date, he will get a refund. The first version of the Income Tax Bill, 2025 had a provision of not giving refund for filing returns late. Tax experts had objected to this. The government has amended this rule in the new version. This is a big change in the interest of taxpayers.
Amendment in rules in the new version of Income Tax Bill
We can understand this with an example. Suppose the last date for filing income tax return is 31st July (15th September this year). Even after this, filing of income tax return is allowed. This is called belated return. Penalty and interest on tax have to be paid for filing belated return. In the earlier version, there was a provision that taxpayers who filed return after the last date will not get refund.
The parliamentary committee had advised the government
The parliamentary committee headed by Baijayant Panda had recommended the government to delete sub-clause (1)(IX) of clause 263. Mayank Mohanka, founder and director, TaxAaram.com, said, “The government has accepted the parliamentary committee’s advice. This means that now the processing of refund is no longer linked to the filing of returns by the due date. Even belated and revised returns will entitle a taxpayer to a refund.”
There has also been a change in the rules for calculating standard deduction
Another important change is related to the calculation of standard deduction on house property. The parliamentary committee had advised to calculate the standard deduction after deducting the municipal tax. The government has accepted this advice. Now the standard deduction will be calculated after deducting the municipal tax from the property value. This can be understood with the help of an example.
Calculation will be done after deducting municipal tax
Suppose the value of a property is Rs 100 and Rs 5 municipal tax has been paid on it. In such a case, the calculation of standard deduction of 30 percent will not be done on Rs 100 but on Rs 95. This means that the standard deduction will be calculated after deducting the municipal tax from the property value. Mohanka said that with this change made in the new version, there will be no possibility of dispute regarding the calculation of standard deduction later.
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