Part 1--Overview and Comparative Study with Income Tax Act 1961

1.

Genesis of Income-Tax Bill, 2025

2.

Overview of Income-tax Bill, 2025 and Key Changes

3.

Table Showing Comparative Chart of Sections of Income-tax Act, 1961 and Corresponding Clauses of Income-tax Bill, 2025

4.

Analytical Study of Key Changes in IT Bill, 2025 vis-a-vis IT Act, 1961

5.

Table Showing Comparative Chart of Clauses of Income-Tax Bill, 2025 and Corresponding Sections of Income-Tax Act, 1961

Chapter I--Preliminary

1.

Short title, extent and commencement.

2.

Definitions.

3.

Definition of "tax year".

Chapter II--Basis of Charge

4.

Charge of income-tax.

5.

Scope of total income.

6.

Residence in India.

7.

Income deemed to be received.

8.

Income on receipt of capital asset or stock-in-trade by specified person from specified entity.

9.

Income deemed to accrue or arise in India.

10.

Apportionment of income between spouses governed by Portuguese Civil Code.

Chapter III--Incomes which do not form Part of Total Income

A.--Incomes not to be included in total income

11.

Incomes not included in total income.

B.--Incomes not to be included in total income of political parties and electoral trusts

12.

Incomes not included in total income of political parties and electoral trusts.

Chapter IV--Computation of Total Income

A.--Heads of income

13.

Heads of income.

14.

Income not forming part of total income and expenditure in relation to such income.

B.--Salaries

15.

Salaries.

16.

Income from salary.

17.

Perquisite.

18.

Profits in lieu of salary.

19.

Deductions from salaries.

C.--Income from house property

20.

Income from house property.

21.

Determination of annual value.

22.

Deductions from income from house property.

23.

Arrears of rent and unrealised rent received subsequently.

24.

Property owned by co-owners.

25.

Interpretation.

D.--Profits and gains of business or profession

26.

Income under head "Profits and gains of business or profession".

27.

Manner of computing profits and gains of business or profession.

28.

Rent, rates, taxes, repairs and insurance.

29.

Deductions related to employee welfare.

30.

Deduction on certain premium.

31.

Deduction for bad debt and provision for bad and doubtful debt.

32.

Other deductions.

33.

Deduction for depreciation.

34.

General conditions for allowable deductions.

35.

Amounts not deductible in certain circumstances.

36.

Expenses or payments not deductible in certain circumstances.

37.

Certain deductions allowed on actual payment basis only.

38.

Certain sums deemed as profits and gains of business or profession.

39.

Computation of actual cost.

40.

Special provision for computation of cost of acquisition of certain assets.

41.

Written down value of depreciable asset.

42.

Capitalising the impact of foreign exchange fluctuation.

43.

Taxation of foreign exchange fluctuation.

44.

Amortisation of certain preliminary expenses.

45.

Expenditure on scientific research.

46.

Capital expenditure of specified business.

47.

Expenditure on agricultural extension project and skill development project.

48.

Tea development account, coffee development account and rubber development account.

49.

Site Restoration Fund.

50.

Special provision in the case of trade, profession or similar association.

51.

Amortisation of expenditure for prospecting certain minerals.

52.

Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc.

53.

Full value of consideration for transfer of assets other than capital assets in certain cases.

54.

Business of prospecting for mineral oils.

55.

Insurance business.

56.

Special provision in case of interest income of specified financial institutions.

57.

Revenue recognition for construction and service contracts.

58.

Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents.

59.

Chargeability of royalty and fee for technical services in hands of non-residents.

60.

Deduction of head office expenditure in case of non-residents.

61.

Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents.

62.

Maintenance of books of account.

63.

Tax audit.

64.

Facilitating payments in electronic modes.

65.

Special provision for computing deductions in case of business reorganisation of co-operative banks.

66.

Interpretation.

E.--Capital gains

67.

Capital gains.

68.

Capital gains on distribution of assets by companies in liquidation.

69.

Capital gains on purchase by company of its own shares or other specified securities.

70.

Transactions not regarded as transfer.

71.

Withdrawal of exemption in certain cases.

72.

Mode of computation of capital gains.

73.

Cost with reference to certain modes of acquisition.

74.

Special provision for computation of capital gains in case of depreciable assets.

75.

Special provision for cost of acquisition in case of depreciable asset.

76.

Special provision for computation of capital gains in case of Market Linked Debenture.

77.

Special provision for computation of capital gains in case of slump sale.

78.

Special provision for full value of consideration in certain cases.

79.

Special provision for full value of consideration for transfer of share other than quoted share.

80.

Fair market value deemed to be full value of consideration in certain cases.

81.

Advance money received.

82.

Profit on sale of property used for residence.

83.

Capital gains on transfer of land used for agricultural purposes not to be charged in certain cases.

84.

Capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases.

85.

Capital gains not to be charged on investment in certain bonds.

86.

Capital gains on transfer of certain capital assets not to be charged in case of investment in residential house.

87.

Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area.

88.

Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone.

89.

Extension of time for acquiring new asset or depositing or investing amount of capital gains.

90.

Meaning of "adjusted", "cost of improvement" and "cost of acquisition".

91.

Reference to Valuation Officer.

F.--Income from other sources

92.

Income from other sources.

93.

Deductions.

94.

Amounts not deductible.

95.

Profits chargeable to tax.

Chapter V--Income of Other Persons, included in Total Income of Assessee

96.

Transfer of income without transfer of assets.

97.

Chargeability of income in transfer of assets.

98.

"Transfer" and "revocable transfer" defined.

99.

Income of individual to include income of spouse, minor child, etc.

100.

Liability of person in respect of income included in income of another person.

Chapter VI--Aggregation of Income

101.

Total income.

102.

Unexplained credits.

103.

Unexplained investment.

104.

Unexplained asset.

105.

Unexplained expenditure.

106.

Amount borrowed or repaid through negotiable instrument, hundi, etc.

107.

Charge of tax.

Chapter VII--Set Off, or Carry Forward and Set Off of Losses

108.

Set off of losses under the same head of income.

109.

Set off of losses under any other head of income.

110.

Carry forward and set off of loss from house property.

111.

Carry forward and set off of loss from capital gains.

112.

Carry forward and set off of business loss.

113.

Set off and carry forward of losses from speculation business.

114.

Set off and carry forward of losses from specified business.

115.

Set off and carry forward of losses from specified activity.

116.

Treatment of accumulated losses and unabsorbed depreciation in amalgamation or demerger, etc.

117.

Treatment of accumulated losses and unabsorbed depreciation in scheme of amalgamation in certain cases.

118.

Carry forward and set off of losses and unabsorbed depreciation in business reorganisation of co-operative banks.

119.

Carry forward and set off of losses not permissible in certain cases.

120.

No set off of losses against undisclosed income consequent to search, requisition and survey.

121.

Submission of return for losses.

Chapter VIII--Deductions to be Made in Computing Total Income

A.--General

122.

Deductions to be made in computing total income.

B.--Deductions in respect of certain payments

123.

Deduction for life insurance premia, deferred annuity, contributions to provident fund, etc.

124.

Deduction in respect of employer contribution to pension scheme of Central Government.

125.

Deduction in respect of contribution to Agnipath Scheme.

126.

Deduction in respect of health insurance premia.

127.

Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.

128.

Deduction in respect of medical treatment, etc.

129.

Deduction in respect of interest on loan taken for higher education.

130.

Deduction in respect of interest on loan taken for residential house property.

131.

Deduction in respect of interest on loan taken for certain house property.

132.

Deduction in respect of purchase of electric vehicle.

133.

Deduction in respect of donations to certain funds, charitable institutions, etc.

134.

Deductions in respect of rents paid.

135.

Deduction in respect of certain donations for scientific research or rural development.

136.

Deduction in respect of contributions given by companies to political parties.

137.

Deduction in respect of contributions given by any person to political parties.

C.--Deductions in respect of certain incomes

138.

Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.

139.

Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone.

140.

Special provision in respect of specified business.

141.

Deduction in respect of profits and gains from certain industrial undertakings.

142.

Deductions in respect of profits and gains from housing projects.

143.

Special provisions in respect of certain undertakings in North-Eastern States.

144.

Special provisions in respect of newly established Units in Special Economic Zones.

145.

Deduction for businesses engaged in collecting and processing of bio-degradable waste.

146.

Deduction in respect of additional employee cost.

147.

Deductions for income of Offshore Banking Units and Units of International Financial Services Centre.

148.

Deduction in respect of certain inter-corporate dividends.

149.

Deduction in respect of income of co-operative societies.

150.

Deduction in respect of certain income of Producer Companies.

151.

Deduction in respect of royalty income, etc., of authors of certain books other than text-books.

152.

Deduction in respect of royalty on patents.

D.--Deductions in respect of other incomes

153.

Deduction for interest on deposits.

E.--Other deductions

154.

Deduction in case of a person with disability.

Chapter IX--Rebates and Reliefs

A.--Rebates and reliefs

155.

Rebate to be allowed in computing income-tax.

156.

Rebate of income-tax in case of certain individuals.

157.

Relief when salary, etc., is paid in arrears or in advance.

158.

Relief from taxation in income from retirement benefit account maintained in a notified country.

B.--Double taxation relief

159.

Agreement with foreign countries or specified territories and adoption by Central Government of agreement between specified associations for double taxation relief.

160.

Countries with which no agreement exists.

Chapter X--Special Provisions Relating to Avoidance of Tax

161.

Computation of income from international transaction and specified domestic transaction having regard to arm's length price.

162.

Meaning of associated enterprise.

163.

Meaning of international transaction.

164.

Meaning of specified domestic transaction.

165.

Determination of arm's length price.

166.

Reference to Transfer Pricing Officer.

167.

Power of Board to make safe harbour rules.

168.

Advance pricing agreement.

169.

Effect to advance pricing agreement.

170.

Secondary adjustment in certain cases.

171.

Maintenance, keeping and furnishing of information and document by certain persons.

172.

Report from an accountant to be furnished by persons entering into international transaction or specified domestic transaction.

173.

Definitions of certain terms relevant to determination of arm's length price, etc.

174.

Avoidance of income-tax by transactions resulting in transfer of income to non-residents.

175.

Avoidance of tax by certain transactions in securities.

176.

Special measures in respect of transactions with persons located in notified jurisdictional area.

177.

Limitation on interest deduction in certain cases.

Chapter XI--General Anti-Avoidance Rule

178.

Applicability of General Anti-Avoidance Rule.

179.

Impermissible avoidance arrangement.

180.

Arrangement to lack commercial substance.

181.

Consequences of impermissible avoidance arrangement.

182.

Treatment of connected person and accommodating party.

183.

Application of this Chapter.

184.

Interpretation.

Chapter XII--Mode of Payment in Certain Cases, Etc.

185.

Mode of taking or accepting certain loans, deposits and specified sum.

186.

Mode of undertaking transactions.

187.

Acceptance of payment through prescribed electronic modes.

188.

Mode of repayment of certain loans or deposits.

189.

Interpretation.

Chapter XIII--Determination of Tax in Special Cases

A.--Determination of tax in certain special cases

190.

Determination of tax where total income includes income on which no tax is payable.

191.

Tax on accumulated balance of recognised provident fund.

192.

Tax in case of block assessment of search cases.

193.

Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.

194.

Tax on certain incomes.

195.

Tax on income referred to in section 102 or 103 or 104 or 105 or 106.

B.--Special provisions relating to tax on capital gains

196.

Tax on short-term capital gains in certain cases.

197.

Tax on long-term capital gains.

198.

Tax on long-term capital gains in certain cases.

C.--New tax regime

199.

Tax on income of certain manufacturing domestic companies.

200.

Tax on income of certain domestic companies.

201.

Tax on income of new manufacturing domestic companies.

202.

New tax regime for individuals, Hindu undivided family and others.

203.

Tax on income of certain resident co-operative societies.

204.

Tax on income of certain new manufacturing co-operative societies.

205.

Conditions for tax on income of certain companies and cooperative societies.

D.--Special provisions relating to minimum alternate tax and alternate minimum tax

206.

Special provision for minimum alternate tax and alternate minimum tax.

E.--Special provisions relating to non-residents and foreign company

207.

Tax on dividends, royalty and technical service fees in case of foreign companies.

208.

Tax on income from units purchased in foreign currency or capital gains arising from their transfer.

209.

Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.

210.

Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.

211.

Tax on non-resident sportsmen or sports associations.

212.

Interpretation.

213.

Special provision for computation of total income of non-residents.

214.

Tax on investment income and long-term capital gains.

215.

Capital gains on transfer of foreign exchange assets not to be charged in certain cases.

216.

Return of income not to be furnished in certain cases.

217.

Benefit to be available in certain cases even after assessee becomes resident.

218.

Provisions not to apply if the assessee so chooses.

219.

Conversion of an Indian branch of foreign company into subsidiary Indian company.

220.

Foreign company said to be resident in India.

F.--Special provisions relating to pass-through entities

221.

Tax on income from securitisation trusts.

222.

Tax on income in case of venture capital undertakings.

223.

Tax on income of unit holder and business trust.

224.

Tax on income of investment fund and its unit holders.

G.--Special provisions relating to income of shipping companies

225.

Income from the business of operating qualifying ships.

226.

Tonnage tax scheme.

227.

Computation of tonnage income.

228.

Relevant shipping income and exclusion from book profit.

229.

Depreciation and gains relating to tonnage tax assets.

230.

Exclusion of deduction, loss, set off, etc.

231.

Method of opting of tonnage tax scheme and validity.

232.

Certain conditions for applicability of tonnage tax scheme.

233.

Amalgamation and demerger.

234.

Avoidance of tax and exclusion from tonnage tax scheme.

235.

Interpretation.

Chapter XIV--Tax Administration

A.--Authorities, jurisdiction and functions

236.

Income-tax authorities.

237.

Appointment of income-tax authorities.

238.

Control of income-tax authorities.

239.

Instructions to subordinate authorities.

240.

Taxpayer's Charter.

241.

Jurisdiction of income-tax authorities.

242.

Jurisdiction of Assessing Officers.

243.

Power to transfer cases.

244.

Change of incumbent of an office.

245.

Faceless jurisdiction of income-tax authorities.

B.--Powers

246.

Power regarding discovery, production of evidence, etc.

247.

Search and seizure.

248.

Powers to requisition.

249.

Reasons not to be disclosed.

250.

Application of seized or requisitioned assets.

251.

Copying, extraction, retention and release of books of account and documents seized or requisitioned.

252.

Power to call for information.

253.

Powers of survey.

254.

Power to collect certain information.

255.

Power to inspect registers of companies.

256.

Power of competent authority.

257.

Proceedings before income-tax authorities to be judicial proceedings.

258.

Disclosure of information relating to assessees.

259.

Power to call for information by prescribed income-tax authority.

260.

Faceless collection of information.

261.

Interpretation.

Chapter XV--Return of Income

A.--Allotment of Permanent Account Number

262.

Permanent Account Number.

B.--Filing of return of income and processing

263.

Return of income.

264.

Scheme for submission of returns through tax return preparers.

265.

Return by whom to be verified.

266.

Self-assessment.

267.

Tax on updated return.

Chapter XVI--Procedure for Assessment

A.--Procedure for assessment

268.

Inquiry before assessment.

269.

Estimation of value of assets by Valuation Officer.

270.

Assessment.

271.

Best judgment assessment.

272.

Power of Joint Commissioner to issue directions in certain cases.

273.

Faceless Assessment.

274.

Reference to Principal Commissioner or Commissioner in certain cases.

275.

Reference to Dispute Resolution Panel.

276.

Method of accounting.

277.

Method of accounting in certain cases.

278.

Taxability of certain income.

279.

Income escaping assessment.

280.

Issue of notice.

281.

Procedure before issuance of notice under section 280.

282.

Time limit for notices under sections 280 and 281.

283.

Provision for cases where assessment is in pursuance of an order on appeal, etc.

284.

Sanction for issue of notice.

285.

Other provisions.

286.

Time limit for completion of assessment, reassessment and recomputation.

287.

Rectification of mistake.

288.

Other amendments.

289.

Notice of demand.

290.

Modification and revision of notice in certain cases.

291.

Intimation of loss.

B.--Special procedure for assessment of search cases

292.

Assessment of income pertaining to the block period.

293.

Computation of total income of block period.

294.

Procedure for block assessment.

295.

Undisclosed income of any other person.

296.

Time-limit for completion of block assessment.

297.

Certain interests and penalties not to be levied or imposed.

298.

Levy of interest and penalty in certain cases.

299.

Authority competent to make assessment of block period.

300.

Application of other provisions of Act.

301.

Interpretation.

Chapter XVII--Special Provisions Relating to Certain Persons

A.--Association of persons, firm, Hindu undivided family, etc.

1.--Legal representatives

302.

Legal representative.

2.--Representative assesses--General provisions

303.

Representative assessee.

304.

Liability of representative assessee.

305.

Right of representative assessee to recover tax paid.

3.--Representative assesses--Special cases

306.

Who may be regarded as agent.

307.

Charge of tax where share of beneficiaries unknown.

308.

Charge of tax in case of oral trust.

4.--Association of persons and body of individuals

309.

Method of computing a member's share in income of association of persons or body of individuals.

310.

Share of member of an association of persons or body of individuals in income of association or body.

311.

Charge of tax where shares of members in association of persons or body of individuals unknown, etc.

5.--Executors

312.

Executor.

6.--Succession to business or profession

313.

Succession to business or profession otherwise than on death.

314.

Effect of order of tribunal or court in respect of business reorganisation.

7.--Partition

315.

Assessment after partition of a Hindu undivided family.

8.--Profits of non-residents from occasional shipping business

316.

Shipping business of non-residents.

9.--Persons leaving India

317.

Assessment of persons leaving India.

10.--Association of persons or body of individuals or artificial juridical person formed for a particular event or purpose

318.

Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose.

11.--Persons trying to alienate their assets

319.

Assessment of persons likely to transfer property to avoid tax.

12.--Discontinuance of business, or dissolution

320.

Discontinued business.

321.

Association dissolved or business discontinued.

322.

Company in liquidation.

13.--Private companies

323.

Liability of directors of private company.

14.--Assessment of firms

324.

Charge of tax in case of a firm.

325.

Assessment as a Firm.

326.

Assessment when section 325 not complied with.

15.--Change in constitution, succession and dissolution

327.

Change in constitution of a firm.

328.

Succession of one firm by another firm.

329.

Joint and several liability of partners for tax payable by firm.

330.

Firm dissolved or business discontinued.

16.--Liability of partners of limited liability partnership in liquidation

331.

Liability of partners of limited liability partnership in liquidation.

B.--Special Provisions for Registered non-profit organisation

1.--Registration

332.

Application for registration.

333.

Switching over of regimes.

2.--Income of registered non-profit organisation

334.

Tax on income of registered non-profit organisation.

335.

Regular income.

336.

Taxable regular income.

337.

Specified income.

338.

Income not to be included in regular income.

339.

Corpus donation.

340.

Deemed corpus donation.

341.

Application of income.

342.

Accumulated income.

343.

Deemed accumulated income.

3.--Commercial activities by registered non-profit organisation

344.

Business undertaking held as property.

345.

Restriction on commercial activities by a registered non-profit organisation.

346.

Restriction on commercial activities by registered non-profit organisation carrying out advancement of any other object of general public utility.

4.--Compliances

347.

Books of account.

348.

Audit.

349.

Return of income.

350.

Permitted modes of investment.

5.--Violations

351.

Specified violation.

352.

Tax on accreted income.

353.

Other violations.

6.--Approval for purpose of deduction under section 133(1)(b)(ii)

354.

Application for approval for purpose of section 133(1)(b)(ii).

7.--Interpretation

355.

Interpretation.

Chapter XVIII--Appeals, Revision and Alternate Dispute Resolutions

A.--Appeals

1.--Appeals to Joint Commissioner (Appeals) and Commissioner (Appeals)

356.

Appealable orders before Joint Commissioner (Appeals).

357.

Appealable orders before Commissioner (Appeals).

358.

Form of appeal and limitation.

359.

Procedure in appeal.

360.

Powers of Joint Commissioner (Appeals) or Commissioner (Appeals).

2.--Appeals to Appellate Tribunal

361.

Appellate Tribunal.

362.

Appeals to Appellate Tribunal.

363.

Orders of Appellate Tribunal.

364.

Procedure of Appellate Tribunal.

3.--Appeals to High Court.

365.

Appeal to High Court.

366.

Case before High Court to be heard by not less than two Judges.

4.--Appeals to Supreme Court.

367.

Appeal to Supreme Court.

368.

Hearing before Supreme Court.

5.--General

369.

Tax to be paid irrespective of appeal, etc.

370.

Execution for costs awarded by Supreme Court.

371.

Amendment of assessment on appeal.

372.

Exclusion of time taken for copy.

373.

Filing of appeal by income-tax authority.

374.

Interpretation of "High Court".

B.--Special provisions for avoiding repetitive appeals

375.

Procedure when assessee claims identical question of law is pending before High Court or Supreme Court.

376.

Procedure where an identical question of law is pending before High Courts or Supreme Court.

C.--Revision by the Principal Commissioner or Commissioner

377.

Revision of orders prejudicial to revenue.

378.

Revision of other orders.

D.--Alternate dispute resolutions

1.--Dispute Resolution Committee in certain cases

379.

Dispute Resolution Committee.

2.--Advance rulings

380.

Interpretation.

381.

Board for Advance Rulings.

382.

Vacancies, etc., not to invalidate proceedings.

383.

Application for advance ruling.

384.

Procedure on receipt of application.

385.

Appellate authority not to proceed in certain cases.

386.

Advance ruling to be void in certain circumstances.

387.

Powers of the Board for Advance Rulings.

388.

Procedure of Board for Advance Rulings.

389.

Appeal.

Chapter XIX--Collection and Recovery of Tax

A.--General

390.

Deduction or collection at source and advance payment.

391.

Direct payment.

B.--Deduction and collection at source

392.

Salary and accumulated balance due to an employee.

393.

Tax to be deducted at source.

394.

Collection of tax at source.

395.

Certificates.

396.

Tax deducted is income received.

397.

Compliance and reporting.

398.

Consequences of failure to deduct or pay or, collect or pay.

399.

Processing.

400.

Power of Central Government to relax provisions of this Chapter.

401.

Bar against direct demand on assessee.

402.

Interpretation.

C.--Advance payment of tax

403.

Liability for payment of advance tax.

404.

Conditions of liability to pay advance tax.

405.

Computation of advance tax.

406.

Payment of advance tax by assessee on his own accord.

407.

Payment of advance tax by assessee in pursuance of order of Assessing Officer.

408.

Instalments of advance tax and due dates.

409.

When assessee is deemed to be in default.

410.

Credit for advance tax.

D.--Collection and recovery

411.

When tax payable and when assessee deemed in default.

412.

Penalty payable when tax in default.

413.

Certificate by Tax Recovery Officer and Validity thereof.

414.

Tax Recovery Officer by whom recovery is to be effected.

415.

Stay of proceedings in pursuance of certificate and amendment or cancellation thereof.

416.

Other modes of recovery.

417.

Recovery through State Government.

418.

Recovery of tax in pursuance of agreements with foreign countries.

419.

Recovery of penalties, fine, interest and other sums.

420.

Tax clearance certificate.

421.

Recovery by suit or under other law not affected.

422.

Recovery of tax arrear in respect of non-resident from his assets.

E.--Interest chargeable in certain cases

423.

Interest for defaults in furnishing return of income.

424.

Interest for defaults in payment of advance tax.

425.

Interest for deferment of advance tax.

426.

Interest on excess refund.

F.--Levy of fee in certain cases

427.

Fee for default in furnishing statements.

428.

Fee for default in furnishing return of income.

429.

Fee for default relating to statement or certificate.

430.

Fee for default relating to intimation of aadhaar number.

Chapter XX--Refunds

431.

Refunds.

432.

Person entitled to claim refund in certain special cases.

433.

Form of claim for refund and limitation.

434.

Refund for denying liability to deduct tax in certain cases.

435.

Refund on appeal, etc.

436.

Correctness of assessment not to be questioned.

437.

Interest on refunds.

438.

Set off and withholding of refunds in certain cases.

Chapter XXI--Penalties

439.

Penalty for under-reporting and misreporting of income.

440.

Immunity from imposition of penalty, etc.

441.

Failure to keep, maintain or retain books of account, documents, etc.

442.

Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions.

443.

Penalty in respect of certain income.

444.

Penalty for false entry, etc., in books of account.

445.

Benefits to related persons.

446.

Failure to get accounts audited.

447.

Penalty for failure to furnish report under section 172.

448.

Penalty for failure to deduct tax at source.

449.

Penalty for failure to collect tax at source.

450.

Penalty for failure to comply with the provisions of section 185.

451.

Penalty for failure to comply with provisions of section 186.

452.

Penalty for failure to comply with provisions of section 187.

453.

Penalty for failure to comply with provisions of section 188.

454.

Penalty for failure to furnish statement of financial transaction or reportable account.

455.

Penalty for furnishing inaccurate statement of financial transaction or reportable account.

456.

Penalty for failure to furnish statement or information or document by an eligible investment fund.

457.

Penalty for failure to furnish information or document under section 171.

458.

Penalty for failure to furnish information or document under section 506.

459.

Penalty for failure to furnish report or for furnishing inaccurate report under section 511.

460.

Penalty for failure to submit statement under section 505.

461.

Penalty for failure to furnish statements, etc.

462.

Penalty for failure to furnish information or furnishing inaccurate information under section 397(3)(d).

463.

Penalty for furnishing incorrect information in reports or certificates.

464.

Penalty for failure to furnish statements, etc.

465.

Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc.

466.

Penalty for failure to comply with the provisions of section 254.

467.

Penalty for failure to comply with the provisions of section 262.

468.

Penalty for failure to comply with the provisions of section 397(1).

469.

Power to reduce or waive penalty, etc., in certain cases.

470.

Penalty not to be imposed in certain cases.

471.

Procedure.

472.

Bar of limitation for imposing penalties.

Chapter XXII--Offences and Prosecution

473.

Contravention of order made under section 247.

474.

Failure to comply with section 247(1)(b)(ii).

475.

Removal, concealment, transfer or delivery of property to prevent tax recovery.

476.

Failure to pay tax to credit of Central Government under Chapter XIX-B.

477.

Failure to pay tax collected at source.

478.

Wilful attempt to evade tax, etc.

479.

Failure to furnish returns of income.

480.

Failure to furnish return of income in search cases.

481.

Failure to produce accounts and documents.

482.

False statement in verification, etc.

483.

Falsification of books of account or document, etc.

484.

Abetment of false return, etc.

485.

Punishment for second and subsequent offences.

486.

Punishment not to be imposed in certain cases.

487.

Offences by companies.

488.

Offences by Hindu undivided family.

489.

Presumption as to assets, books of account, etc., in certain cases.

490.

Presumption as to culpable mental state.

491.

Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.

492.

Certain offences to be non-cognizable.

493.

Proof of entries in records or documents.

494.

Disclosure of particulars by public servants.

495.

Special Courts.

496.

Offences triable by Special Court.

497.

Trial of offences as summons case.

498.

Application of Bharatiya Nagarik Suraksha Sanhita, 2023 to proceedings before Special Court.

Chapter XXIII--Miscellaneous

499.

Certain transfers to be void.

500.

Provisional attachment to protect revenue in certain cases.

501.

Service of notice, generally.

502.

Authentication of notices and other documents.

503.

Service of notice when family is disrupted or firm, etc., is dissolved.

504.

Service of notice in case of discontinued business.

505.

Submission of statement by a non-resident having liaison office.

506.

Furnishing of information or documents by an Indian concern in certain cases.

507.

Submission of statements by producers of cinematograph films or persons engaged in specified activity.

508.

Obligation to furnish statement of financial transaction or reportable account.

509.

Obligation to furnish information on transaction of crypto-asset.

510.

Annual information statement.

511.

Furnishing of report in respect of international group.

512.

Publication of information respecting assessees in certain cases.

513.

Appearance by registered valuer in certain matters.

514.

Registration of Valuers.

515.

Appearance by authorised representative.

516.

Rounding off of amount of total income, or tax payable or refundable.

517.

Receipt to be given.

518.

Indemnity.

519.

Power to tender immunity from prosecution.

520.

Cognizance of offences.

521.

Probation of Offenders Act, 1958 and section 401 of Bharatiya Nagarik Suraksha Sanhita, 2023, not to apply.

522.

Return of income, etc., not to be invalid on certain grounds.

523.

Notice deemed to be valid in certain circumstances.

524.

Presumption as to assets, books of account, etc.

525.

Authorisation and assessment in case of search or requisition.

526.

Bar of suits in civil courts.

527.

Power to make exemption, etc., in relation to participation in business of prospecting for, extraction, etc., of mineral oils.

528.

Power of Central Government or Board to condone delays in obtaining approval.

529.

Power to withdraw approval.

530.

Act to have effect pending legislative provision for charge of tax.

531.

Power to rescind exemption in relation to certain Union territories already granted under section 294A of the Income-tax Act, 1961.

532.

Power to frame Schemes.

533.

Power to make rules.

534.

Laying before Parliament.

535.

Removal of difficulties.

536.

Repeal and savings.

Schedule

I

Conditions for Certain Activities not to Constitute Business Connection in India

II

Income not to be included in Total Income

III

Income not to be included in Total Income of Eligible Persons

IV

Income not to be included in Total Income of Eligible Non-Residents, Foreign Companies and Other Such Persons

V

Income not to be included in Total Income of Certain Eligible Persons including Investment Funds, Business Trusts and their Unit Holders

VI

Income not to be included in Total Income of Certain Eligible Persons in International Financial Services Centre or having Income Therefrom

VII

Persons Exempt from Tax

VIII

Income not to be included in the Total Income of Political Parties and Electoral Trusts

IX

Deduction for Tea Development Account, Coffee Development Account and Rubber Development Account for Computing Income under the Head "Profits and Gains of Business or Profession"

X

Deduction for Site Restoration Fund for Computing Income under the Head "Profits and Gains of Business or Profession"

XI

Recognised Provident Funds

XII

XIII

List of Articles or Things

XIV

Insurance Business

XV

Deduction in Respect of Life Insurance Premia, Contribution to Provident Fund, Subscription to Certain Equity Shares, etc.

XVI

Permitted Modes of Investment or Deposits Forms or Modes of Investment or Deposits by a Charitable or Religious Trust or Institution

Statement of Objects and Reasons

Notes on Clauses

Financial Memorandum

Memorandum Regarding Delegated Legislation

Corrigenda : The Income Tax Bill, 2025

Section Mapping [Section Number of Income-tax Act, 1961, Section heading as per Income-tax Act, 1961 and Section number as per latest draft]

Frequently Asked Questions [FAQs]

Broad Scope of New Income Tax Bill

I. Preliminary Chapter

II. Non-Profit Organisations

III. Section 10 'Exemptions'

IV. Salary and House Property

V. Profits and gains of business and profession

VI. Clubbing provisions

VII. Deeming Provisions [Sections 68-69D of the Income Tax Act, 1961]

VIII. Set-off and Carry-forward of loss and unabsorbed depreciation, etc. [Sections 70-80 of the Income Tax Act, 1961]

IX. Chapter VIA of the Income Tax Act, 1961

X. Advance tax, refund and Interest

XI. Taxation in Special Rate Cases

XII. Double Taxation Relief

XIII. Tonnage Tax

XIV. Tax Administration

XV. Offences and Prosecution

XVI. Miscellaneous

XVII. Assessment Procedure

XVIII. Return of Income

XIX. Tax Deduction and Collection at Source

Press Release : Executive Summary on the Comprehensive Simplification of the Income-tax Act, 1961