Income-tax Bill 2025 defines taxable income from GDRs and rules for amalgamation losses

This Bill proposes a comprehensive framework for assessing and collecting income tax in India, defining what constitutes taxable income, allowable deductions, and specific tax rates for different types of earners and entities.

Individuals, companies, firms, political parties, electoral trusts, and other entities with income in India, including residents and non-residents.

• Defines the scope of total income and residence in India.
• Specifies incomes that are excluded from total income, including specific provisions for political parties and electoral trusts.
• Establishes rules for computing income from salaries, house property, business or profession, capital gains, and other sources.
• Outlines deductions for payments such as life insurance, health insurance, education loans, housing loans, electric vehicle purchases, and donations.
• Provides for rebates, reliefs, and double taxation relief through agreements with foreign countries.
• Includes special provisions to prevent tax avoidance, such as transfer pricing rules and a General Anti-Avoidance Rule.
• Regulates modes of payment for certain loans, deposits, and transactions, mandating electronic modes in prescribed cases.
• Sets out tax rates for short-term and long-term capital gains and introduces a new tax regime for certain manufacturing domestic companies.

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