Relief for Taxpayers: Refunds to Be Issued Even for Delayed Returns
Amended Income Tax Bill 2025 brings significant changes for individuals, businesses, and property owners
The Lok Sabha on Tuesday passed the amended Income Tax Bill 2025, introducing a series of taxpayer-friendly provisions, including a major relief: income tax refunds will now be issued even if returns are filed late. Finance Minister Nirmala Sitharaman presented the reforms as part of efforts to simplify tax compliance and ensure fairness.
The Standing Committee on Finance, chaired by Jayant Sinha, reviewed and endorsed the bill after discussions with experts and stakeholders. The new provision ensures that taxpayers will receive refunds with applicable interest, even if returns are delayed beyond the previous deadline.
Key highlights include:
- For salaried employees: Introduction of a “Zero TDS Certificate” facility; the exemption limit under Section 87 has been raised to ₹60,000. Additionally, exemption on government pension and relief on interest earned from small savings have been enhanced.
- For property and shop owners: No “National Estate Tax” will be levied on unoccupied residential properties; tax exemptions extended for income up to 30% of rental value; and benefits for newly constructed rental housing.
- For businesses and corporations: Rationalization of inter-corporate dividend taxation; updated rules for charitable trusts; and improved TDS/TCS compliance mechanisms.
The government stressed that these changes will ease compliance burdens while expanding the tax base, ensuring better transparency in India’s financial system.
