Income-tax Act, 2025 – BILL No. 24 OF 2025 – View/Download PDF 

Income-tax Act, 2025 – BILL No. 24 OF 2025 – View/Download PDF

The Gazette of India

CG-DL-E-13022025-261003

EXTRAORDINARY
PART II — Section 2
PUBLISHED BY AUTHORITY

No. 7] NEW DELHI, THURSDAY, FEBRUARY 13, 2025/MAGHA 24, 1946 (Saka)

Separate paging is given to this Part in order that it may be filed as a separate compilation.

LOK SABHA

The following Bill was introduced in Lok Sabha on 13th February, 2025:-

BILL No. 24 OF 2025

A Bill to consolidate and amend the law relating to income-tax.

Be it enacted by Parliament in the Seventy-sixth Year of the Republic of India, as follows:––

CHAPTER I
PRELIMINARY

1. (1) This Act may be called the Income-tax Act, 2025.

(2) It extends to the whole of India.

(3) Save as otherwise provided in this Act, it shall come into force on the 1st April, 2026.

2. In this Act, unless the context otherwise requires,—

(1) “accountant” shall have the meaning assigned to it in section 515(3)(b);

(2) “Additional Commissioner” means a person appointed to be an Additional Commissioner of Income-tax under section 237(1);

(3) “Additional Director” means a person appointed to be an Additional Director of Income-tax under section 237(1);

(4) “advance tax” means the advance tax payable as per Chapter XIX-C;

(5) “agricultural income” means—

(a) any rent or revenue derived from a land which is situated in India and is used for agricultural purposes;

(b) any income derived from such land by—

(i) agriculture; or

(ii) the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him fit to be taken to market; or

(iii) the sale by a cultivator or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in item (ii);

(c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent-in-kind of any such land with respect to which, or the produce of which, any process mentioned in sub-clause(b) (ii) or (b)(iii) is carried on, where such building––

(i) is on or in the immediate vicinity of such land and that land is assessed to land revenue in India, or is subject to a local rate assessed and collected by officers of the Government as such, or where the land is not so assessed to land revenue or subject to a local rate, it is not situated in any area as specified in clause (22)(iii)(A) or (B);and

(ii) is required as a dwelling house, or as a store-house, or other out-building, by the receiver of the rent or revenue or the cultivator, or the receiver of rent-in-kind, by reason of his connection with the land;

(d) any income derived from saplings or seedlings grown in a nursery, but shall not include––

(i) the income derived from any building or land referred to in sub-clause (c) arising from the use of such building or land for any purpose (including letting for residential purpose or for the purpose of any business or profession) other than agriculture falling under sub-clause (a) or (b); or

(ii) any income arising from the transfer of any land referred to in clause (22)(iii)(A) or (B);

(6) “amalgamation”, in relation to companies, means the merger of one or more companies with another company or the merger of two or more companies to form one company (the company or companies which so merge being referred to as the amalgamating company, and the companies and the company with which they merge or which is formed as a result of such merger being referred to as the amalgamated company) in such a manner that—

(a) all the property of the amalgamating company or companies immediately before the amalgamation become the property of the amalgamated company by virtue of the amalgamation;

(b) all the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation;

(c) the shareholders holding not less than three-fourths in value of the shares in the amalgamating company or companies (other than shares already held therein immediately before the amalgamation by, or by a nominee for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company by virtue of the amalgamation,

otherwise than as a result of the acquisition of the property of one company by another company pursuant to the purchase of such property by the other company or as a result of the distribution of such property to the other company after the winding up of the first-mentioned company;

(7) “annual value”, in relation to any property, means its annual value as determined under section 21;

(8) “Appellate Tribunal” means the Appellate Tribunal constituted under section 361;

(9) “approved gratuity fund” means a gratuity fund, which is approved and continues to be approved by the approving authority as per Part B of Schedule XI;

(10) “approved superannuation fund” means a superannuation fund or any part of a superannuation fund, which is approved and continues to be approved by the approving authority as per Part B of Schedule XI;

(11) “assessee” means a person by whom any tax or any other sum of money is payable under this Act, and includes––

(a) every person in respect of whom any proceeding under this Act has been taken––

(i) for the assessment of his income or of the loss sustained by him or refund due to him; or
(ii) for the assessment of the income of any other person in respect of which he is assessable, or of the loss sustained by such other person or refund due to such other person;

(b) every person who is deemed to be an assessee under this Act;

(c) every person who is deemed to be an assessee in default under this Act;

(12) “Assessing Officer” means—

(a) the Assistant Commissioner or Deputy Commissioner or Assistant Director or Deputy Director or the Income-tax Officer, who is vested with the relevant jurisdiction by virtue of directions or orders issued under section 241(1) or (2) or (3), or any other provision of this Act; or
(b) the Additional Commissioner or Additional Director or Joint Commissioner or Joint Director, who is directed under section 241(5)(b) to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Act;

(13) “assessment” includes reassessment and recomputation;

(14) “Assistant Commissioner” means a person appointed to be an Assistant Commissioner of Income-tax or a Deputy Commissioner of Income-tax under section 237(1);

(15) “Assistant Director” means a person appointed to be an Assistant Director of Income-tax or a Deputy Director of Income-tax under section 237(1);

(16) “average rate of income-tax” means the rate arrived at by dividing the amount of income-tax calculated on the total income, by such total income;

(17) “block of assets” means a group of assets falling within a class of assets comprising of—

(a) tangible assets, being buildings, machinery, plant or furniture;
(b) intangible assets, being know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, not being goodwill of a business or profession, in respect of which the same percentage of depreciation is prescribed;

(18) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963;

(19) “books or books of account” includes ledgers, day-books, cash books, account-books or other books, whether kept––

(a) in written form; or
(b) in electronic or any digital form, or on cloud based storage, or on any electromagnetic data storage device, such as floppy, disc, tape, portable data storage device, external hard drives, or memory cards; or
(c) as print-outs of data stored in electronic or digital form or on storage devices mentioned in sub-clause (b);

(20) “business” includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture;

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