About Understanding Income Tax Bill, 2025 |
Comparative Table 1 – Income Tax Act = Income Tax Bill Comparative Table 2 – Income Tax Bill = Income Tax Act Income Tax Bill, 2025 CHAPTER I PRELIMINARY 1.Short title, extent and commencement 2.Definitions 3.Definition of “tax year” 4.Charge of income-tax 5.Scope of total income 6.Residence in India CHAPTER II BASIS OF CHARGE 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 15.Salaries 16.Income from salary 17.Perquisite 18.Profits in lieu of salary B. Salaries 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 101.Total income CHAPTER VI AGGREGATION OF 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 organization 334.Tax on income of registered non-profit organization 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 organization 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 in |
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