In an effort to simplify tax compliance, the Income Tax Bill 2025 introduces changes designed to make filing returns more straightforward. By consolidating various provisions under one umbrella, the bill aims to offer better clarity for every category of assessee while keeping essential filing deadlines and return provisions intact.
Consolidated Filing Obligations
i) Centralized Information: The new bill divides Chapter XV into two parts, one concerning the permanent account number (PAN) and the other dedicated to return filing. It achieves a major simplification by consolidating all categories of assessees in one place. This removes the need for taxpayers to search through multiple sub-sections of the existing Income Tax Act.
ii) Ease of Compliance: With all requirements clearly laid out, each category of assessee can easily locate and fulfill the filing obligations, streamlining the overall process.
Exempt Entities and Filing Requirements
Despite their tax-exempt status, organizations that qualify as exempt entities must still file a return of income. This is required when their total income, before breaking any exemptions, exceeds the maximum amount that is not chargeable to income tax.
Filing Deadlines and Return Provisions
i) Unchanged Due Dates: While the presentation of the filing deadlines is now provided in a simplified, tabular format for clearer understanding, the actual due dates remain the same as under current law.
ii) Belated, Revised, and Updated Returns: The provisions regarding belated returns, revised returns, and updated returns continue in full as per the Income Tax Act, 1961 (with relevant amendments proposed through the Finance Act, 2025). Taxpayers who need to file returns after the due date or later correct errors on their return will continue to follow the existing rules.
Conclusion
The new income tax bill focuses on modernizing the filing process by organizing critical information into a single, accessible section. Taxpayers benefit from this centralized approach since it dispels much of the confusion that arose from scattered provisions. Meanwhile, essential deadlines and mechanisms, in terms of filing belated, revised, or updated returns, remain unchanged, preserving consistency for all assessees. This simplification promises a more user-friendly experience while ensuring that all filing obligations are met without disrupting the established regulatory framework.