Key Highlights
- Bill replaces 1961 Act with a simplified framework.
- Introduction of a single “Tax Year” to eliminate dual terms.
- Major reforms target clarity, digitalisation, and reduced litigation.
Detailed Insights
The draft emerged after 285 committee recommendations and 4,500‑page review, leading to 536 sections and 16 schedules.
Key features include updated tax‑slab stability, removal of ambiguous clauses, enhanced digital rule‑making powers for CBDT, and new reliefs such as refunds on late returns.
Key Concepts
- Tax Year: Unified fiscal period replacing “Previous Year” and “Assessment Year.”
- NIL‑TDS: Certificates for taxpayers with zero tax liability to simplify compliance.
- MSME Definition: Alignment with MSME Act to reduce confusion.
- Section 80M: Reinstated deduction for inter‑corporate dividends.
- Digital‑First Approach: Emphasis on faceless processes and automation.