Statutory & Litigation Reforms
- New Income Tax Act, 2025: Replaces the 1961 Act effective April 1, 2026, with simplified language and forms.
- Unified Assessment & Penalty Orders: Integrates assessment and penalty proceedings into a common order to reduce multiplicity.
- Decriminalization of Procedural Omissions: Non-production of books and certain TDS payment delays are now decriminalized.
- MACT Interest Tax Exemption: Interest awarded by Motor Accident Claim Tribunals to individuals is now tax-exempt.
- GST Appellate Empowerment: Existing Tribunals are empowered to hear appeals pending the National Appellate Authority.
- FEMA Rules Overhaul: A comprehensive review of Non-debt Instruments Rules to simplify foreign investment frameworks.
- Retrospective Penalty Immunity: Immunity for non-disclosure of foreign assets under ₹20 lakh (excluding immovable property).
Tax Advisory & Compliance Shifts
- Updated Returns Post-Reassessment: Taxpayers can now update returns even after reassessment starts at a 10% rate.
- Extended Revised Return Window: The deadline to revise returns is extended from December 31 to March 31.
- Manpower TDS Standardization: Manpower services are now categorized as “work” with a fixed 1% or 2% rate.
- TAN Relaxation for Property Buyers: Resident buyers of non-resident property can use PAN instead of obtaining a TAN.
- 5-Year IT Safe Harbour: Automated rule-driven approvals for IT services can now continue for five years.
This blog is an academic initiative brought to you by AMLEGALS. Subscribe – Stay updated, Stay compliant.