Finance Buddy

Finance Minister Nirmala Sitharaman tabled the Income Tax Bill 2025 in the Lok Sabha on February 13, 2025. The new bill, which is replacing the Income Tax Act of 1961, is slated to come into effect on April 1, 2026. One of the key highlights of the new bill is the restructuring of tax deductions available under Section 80C of the Income-Tax Act, 1961. These deductions have been moved to a new section, Clause 123, in the Income Tax Bill 2025. The Central Board of Direct Taxes (CBDT) has said that this change aims to simplify the process for taxpayers by creating a more transparent and organised system. “The deduction limit remains clearly stated within the section, while the schedule provides an easy-to-understand breakdown of eligible deductions,” the Central Board of Direct Taxes said.   Sujit Sudhakar Bangar, founder, TaxBuddy.com explains key highlights of the changes   Renumbering and Reorganisation:   Section 80C has been renumbered as Section 123 in the new bill....

Will you be eligible for a refund even if you file your  ITR  (income tax return) late? This concern was raised by many people due to the introduction of new  Income Tax Bill 2025  in the Lok Sabha. Many experts have pointed out that the new  income tax  bill, which is likely to be applicable starting FY2026-27, highlights that if taxpayer does not file their income tax returns before the due date, they will not be eligible to get a refund. Experts are pointing out the same on various social media platforms. According to Vivek Jalan, Partner, Tax Connect Advisory Services LLP, “Clause 263(1)(a)(ix) of The New Income Tax Bill 2025 requires that a person seeking refunds under Chapter XX must mandatorily file Income Tax Returns within "due date.". This is in sharp variance to the current Income Tax Act 1961, where a person, even filing a belated return till 31st Dec of the assessment year, can claim refunds if due to them.” “On top of that, Clause 433 require...