🔆 Income Tax Bill, 2025 – Key Points

📍 Context
✅ Parliament passed the Income Tax Bill, 2025 to replace the old Income Tax Act, 1961 → aims to simplify, rationalise, and shorten provisions.

📍 Major Features
✅ Virtual Digital Space Defined → covers emails, social media, online accounts, cloud servers, websites, etc.
➡️ Tax authorities may get power to access these in case of suspected tax evasion (with company assistance).

✅ Uniform ‘Tax Year’ → replaces “assessment year” & “previous year” with a single tax year (1st April – 31st March).

✅ No TCS on Education Remittances → Liberalised Remittance Scheme (LRS) remittances for education (financed by banks/FIs) exempt from TCS.

✅ Nil TDS Certificate → taxpayers with no liability can apply in advance.

✅ Alternate Minimum Tax (AMT) → applicability for LLPs aligned with existing IT Act. Ensures those availing deductions still pay minimum tax.

📍 About Income Tax
✅ A direct tax levied on income earned by individuals, companies, or other entities in a financial year.
✅ Collected via progressive tax slabs → rates vary under new regime & deductions.
✅ Direct Tax Collections (2025-26): ₹7.99 lakh crore (↓1.9% from FY 2024-25).

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