Select Committee Report on Income-Tax Bill Tabled
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: The original 2025 draft inadvertently allowed long-term capital losses to be set off against short-term capital gains. NOW: The revised text aligns with the 1961 Act, restricting long-term capital losses to be set off only against long-term capital gains.
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BEFORE: The initial draft missed the provision exempting Liberalised Remittance Scheme (LRS) remittances for education from Tax Collected at Source (TCS) if financed by a loan. NOW: The revised bill provides a 'nil' TCS on LRS education remittances.
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BEFORE: The original draft inadvertently removed deductions for inter-corporate dividends passed on to shareholders for companies availing a concessional corporate tax rate. NOW: The revised bill reinstated this deduction to prevent unintended corporate tax burdens.
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BEFORE: The initial draft heavily cross-referenced the legacy 1961 Act for definitions like 'income', forcing taxpayers to consult the old law. NOW: The committee recommended removing redundant cross-references to ensure the new code is self-contained.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)With reference to the Select Committee report on the Income-Tax Bill, 2025, consider the following statements: 1. The committee was an ad hoc body formed specifically to scrutinize the proposed overhaul of the Income-Tax Act, 1961. 2. Based on the committee's recommendations, the government withdrew the original bill and introduced the Income-Tax (No. 2) Bill, 2025. Which of the statements given above is/are correct?