Refunds, Dividends, NIL TDS: New Version Of Income Tax Bill Packs A Punch – Find Out What’s New

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New Delhi: The Income-Tax Bill, 2025, which was introduced in Parliament earlier this year (on February 13) to replace the old Income-Tax Act of 1961, has now been withdrawn. A revised version of the bill will be introduced on August 11.

The new version includes most of the 285 suggestions made by a special committee that reviewed the earlier draft and submitted its report on July 21.

The main goal of these changes is to make the law easier to read and understand, and to correct technical issues like unclear wording, better phrasing, and accurate cross-references.

Key Changes in the Revised Income Tax Bill 2025:
Tax Refunds:
The old bill said you won’t get a refund if you file your tax return late. This has now been removed. You can now get a refund even if you file after the due date.

Corporate Dividends (Section 80M):
Earlier, the bill missed out on giving tax benefits to companies receiving dividends under a special tax rate. That benefit will now be included.

Zero TDS Certificate:
Taxpayers will now be allowed to apply for a NIL TDS (Tax Deducted at Source) certificate – meaning they can request not to have tax deducted at source if certain conditions are met.

No Change in Tax Rates
There were rumors that the bill would change capital gains tax rates, but the Income Tax Department denied this. They clarified that the new bill is focused on simplifying the language and removing outdated rules, not changing tax rates.

The current Income Tax Act, 1961 has been around since April 1, 1962, and has been amended over 65 times with more than 4,000 changes. The government now wants a fresh start with a modern, cleaner version of the tax law.