Happy 79th Independence Day

Happy 79th Independence Day, friends! We are truly fortunate to live as humans on the sacred land of Bharat. Some may disagree, citing rampant corruption, misused laws like 498A and the SC/ST Act, disregard for talent, reservation-based appointments in education and health, and a sluggish, indecisive government struggling to act against leaders who sow division in society over language, reservations, or freebies for benefit in elections.

Yet, no nation is problem-free; every country faces unique challenges. We often demand what our country has done for us but rarely consider our own contributions. Never forget: the nation is our Mother - Bharat Maa. Faults stem not from the country but from leaders who twist politics from service to personal rule and family wealth-building. Politicians' children study at elite US and UK universities, their families access world-class hospitals, while ordinary citizens get mere election promises.

Still, hope persists for a brighter future. PM Modi has done commendable work, and I trust Yogi Adityanath will drive India forward.

Key announcements from PM Modi's 103-minute, 12th consecutive Independence Day speech:

Economic and Tax Reforms:

- Next-Gen GST Overhaul: Lower rates on essentials, eased burdens for citizens, MSMEs, and vendors - a "Diwali gift" by October 2025 to simplify compliance.

- Task Force for $10T Economy: Modernize governance, reduce red tape, aiming for $10 trillion by 2047.

Employment and Youth Initiatives:

- PM Viksit Bharat Rozgar Yojana: ₹1 lakh crore to generate 3 crore jobs, with ₹15,000 monthly aid for new private hires.

- ₹1 Lakh Crore Youth Fund: For startups in AI, robotics, green energy, and semiconductors.

Technology and Manufacturing:

- Indigenous Semiconductor: First "Made in India" chip by end-2025.

- Jet Engines: Challenge to develop homegrown fighter engines for defence self-reliance.

- Social Media & Space: Youth urged to create Indian platforms and advance space goals, including a station.

Energy and Environment:

- 10x Nuclear Expansion: Tenfold capacity by 2047, with 10 new reactors.

- Samudra Manthan Mission: Explore deep water for oil, gas, and energy independence; boost solar, hydrogen and nuclear.

- Global South Partnership: For clean energy and food security.

National Security and Other Initiatives:

- Demography Mission: Tackle imbalances from infiltration and illegal migration to protect unity.

- Sudarshan Chakra Mission: Indigenous defence shield against aerial/missile threats by 2035.

- Indus Water Treaty: "Blood and water won’t flow together" - possible rethink to safeguard farmers.

- Farmers' Support: Expand PM-KISAN, digital credit, irrigation, solar pumps; no harmful policies for farmers, fishers, or dairy.

- Tributes: To RSS for 100 years; full aid for disaster victims like landslide survivors.

Once again Happy Independence Day. Proud to be Indian. Jai Hind. Thanks.

11th August 2025 : The Income Tax (No. 2) Bill, 2025

The Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, 2025, to replace the Income Tax Act, 1961, was withdrawn on August 8, 2025, due to drafting errors and ambiguities identified by the Select Committee chaired by BJP MP Baijayant Panda. A revised version, the Income Tax (No. 2) Bill, 2025 (Bill No. 104), was presented in the Lok Sabha on August 11, 2025, incorporating 285 recommendations from the committee to enhance clarity, simplify compliance, and modernize India’s direct tax framework. And, the Lok Sabha passed the Income Tax Bill (No. 2) 2025, a significant legislation replacing the 63-year-old income tax law for individuals and corporations, in just three minutes without any debate.

Key Highlights of the Income Tax (No. 2) Bill, 2025:

1. Simplified Language: Clear, concise tax laws for easier understanding.
2. Fewer Sections: Reduces from over 800 (including sub-sections) to 536 sections across 23 chapters.
3. Consolidated Deductions: Groups deductions to ease tax filing.
4. Lower Penalties: Reduced penalties for minor offenses.
5. Unchanged Tax Rates: Maintains existing slabs, capital gains, and deadlines.
6. Trust-First Policy: Encourages voluntary compliance with less scrutiny.
7. Modernized Administration: Enhances CBDT powers with digital tools.
8. Tax Year Concept: Replaces financial/assessment year for clarity.
9. Removed Obsolete Provisions: Eliminates over 300 outdated rules.
10. Structured Format: Uses tables and formulas for clarity.
11. Vacant Property Fix: Drops higher taxes on vacant properties.
12. House Property Deductions: Clarifies 30% deduction post-municipal taxes; extends pre-construction interest to let-out properties.
13. Commuted Pension Equity: Deductions for non-employees under “Income from Other Sources.”
14. Commercial Property Clarity: Excludes idle commercial properties from house property taxation.
15. GAAR Refinement: Balances anti-avoidance rules with fairness.
16. Digital Device Access: Clarifies access in undisclosed foreign income cases, addressing privacy.
17. Reduced Litigation: Clearer rules to minimize disputes.
18. MSME-Friendly: Simplifies compliance for small businesses.
19. Middle-Class Relief: Raises Section 87A rebate threshold from ₹7 lakh to ₹12 lakh.
20. Marginal Relief: Eases tax burden for incomes slightly above ₹12 lakh.
21. S.I.M.P.L.E Framework: Streamlined, integrated, transparent, and efficient tax system.
22. No New Powers: Clarifies existing court-approved powers for digital access.
23. Enhanced Services: Introduces digital tools for better compliance.
24. Stakeholder Input: Reflects 285 committee recommendations.
25. April 2026 Rollout: Implementation starts April 2026.

Link of Bill for further Analysis:

https://prsindia.org/files/bills_acts/bills_parliament/2025/Bill_Text-Income-tax(No.2)_Bill_2025.pdf

8th August 2025 : Finance Minister Nirmala Sitharaman withdrew the Income Tax Bill, 2025

On August 8, 2025, Finance Minister Nirmala Sitharaman withdrew the Income Tax Bill, 2025, following recommendations from a 31-member Select Committee chaired by BJP MP Baijayant Jay Panda. The bill, initially introduced in February 2025 to consolidate and modernize India’s income tax laws, will be replaced by a revised version to be tabled in Parliament on August 11, 2025. The new bill incorporates extensive feedback to simplify, clarify, and enhance fairness in the tax system, with implementation expected from April 1, 2026. The Income Tax Act, 1961, remains in effect until the new legislation is enacted.

Reasons for Withdrawal of the Income Tax Bill, 2025

1. Incorporation of Parliamentary Feedback: The Select Committee, after extensive consultations, submitted a 4,575-page report on July 21, 2025, with 285 recommendations to improve the draft. Notable suggestions included:
- Clearer Definitions: Refining terms like “beneficial owner,” “capital asset,” “infrastructure capital company,” and “MSME” for legal precision.
- Simplified Deductions: Streamlining property-related tax deductions.
- Procedural Enhancements: Allowing TDS refunds post-ITR filing deadlines without penalties to ease taxpayer compliance.
- Balanced Tax Evasion Rules: Refining General Anti-Avoidance Rules (GAAR) to ensure strict enforcement while protecting honest taxpayers.

2. Correction of Drafting Errors: The Finance Minister highlighted the need to fix drafting inaccuracies, align terminology, ensure proper cross-referencing, and clarify legislative intent to avoid misinterpretation.

3. Prevention of Confusion: Multiple amended versions of the bill risked creating confusion among lawmakers, taxpayers, and tax authorities. Withdrawing the original draft allows the government to present a single, consolidated bill reflecting all updates.

4. Integration of Stakeholder Inputs: Beyond the Select Committee’s recommendations, feedback from tax experts, industry bodies, and professionals via the CBDT’s e-filing portal (opened March 8, 2025) prompted further revisions.

Key Features of the Revised Income Tax Bill, 2025:

1. Simplified Structure and Language.

2. Taxpayer-Friendly Measures:
- Enhanced Rebates: Introduces larger tax rebates for middle-class individuals and MSMEs.
- Flexible TDS/TCS Refunds: Simplifies refund processes, allowing claims even after ITR filing deadlines without penalties.
- Support for Small Businesses: Tailored provisions to ease compliance for MSMEs.

3. Fair and Balanced Enforcement:
- Refined GAAR Provisions.
- Modernized Digital Search Powers.

4. Modernization of Tax Framework: Aligns the tax system with global best practices, promoting ease of doing business and digital compliance.

For further details on the legislative process or specific provisions, stakeholders can refer to updates on the Income Tax Department’s e-filing portal or monitor parliamentary proceedings. Thanks.