Income Tax Bill 2025: CBDT Empowered to Set Rules for ITR Forms, Review Credit Card Bills, Bank Accounts
The 2025 Income Tax Bill has introduced significant changes to streamline and simplify existing tax laws. It aims to address the complexity and inefficiencies of the Income-Tax Act, 1961, which had undergone multiple amendments over time, making compliance more challenging for taxpayers. The new bill removes redundant rules and presents a simplified version of the tax law, making it easier to understand and apply.
Preservation of Key Provisions
While the Income-Tax Bill 2025 simplifies existing laws, it maintains the core tax policies and important provisions of the 1961 Act.
- The aim is to reduce the complexity caused by multiple amendments over the years.
- Redundant or outdated provisions have been eliminated.
- The language has been streamlined to make it more comprehensible.
Increased Powers for CBDT
One of the key highlights of the bill is the expanded role of the Central Board of Direct Taxes (CBDT).
- The bill grants the CBDT the power to frame rules for Income Tax Return (ITR) forms and their verification process.
- These rules also apply to other documentation related to tax submissions, enhancing clarity and compliance.
New Authority for Tax Assessors
Under the bill, tax assessing officers have the authority to request additional financial information to verify taxpayer details.
- Credit card and bank account information can now be requested.
- These steps are aimed at improving tax verification and ensuring transparency.
ITR Submission Guidelines
The CBDT is now responsible for establishing guidelines on how ITR forms should be submitted.
- This includes determining who must file returns electronically or by other means.
- The CBDT will define the format and method of submission, ensuring uniformity across submissions.
- Guidelines also cover the documents and papers that must be provided if not submitted electronically.
Details for Assessing Officers
The bill specifies what types of information tax assessing officers can request from taxpayers.
- This includes exempt income, asset ownership details, and information on bank accounts and credit cards.
- Officers may also request details on expenditure that exceeds the prescribed limit for specific categories.
The Income Tax Bill 2025 is a significant step toward making India’s tax system more efficient and accessible. By giving the CBDT the power to simplify and define the process of ITR submission and verification, the bill aims to reduce tax-related complexities. Additionally, it ensures greater transparency and compliance, ultimately benefiting both the tax authorities and taxpayers.
