Income-tax Bill 2025 introduces Agnipath Scheme provisions and party donation rules

This Bill proposes to replace the existing Income-tax Act with a new framework for assessing and collecting income tax in India. It defines how different types of income (such as salaries, business profits, and capital gains) are calculated, taxed, and exempted.

Individuals, Hindu Undivided Families (HUFs), companies, firms, associations of persons, political parties, electoral trusts, and non-residents who have income accruing or arising in India.

• Defines the scope of total income and residence in India.
• Establishes rules for computing income from salaries, house property, business/profession, capital gains, and other sources.
• Specifies deductions for expenses like life insurance, health insurance, education loans, home loans, and electric vehicle purchases.
• Provides exemptions for specific groups, such as political parties, electoral trusts, and income from agricultural land in certain cases.
• Includes provisions for set-off and carry forward of losses.
• Establishes rules for transfer pricing and arm's length pricing for international and specified domestic transactions.
• Introduces a General Anti-Avoidance Rule (GAAR) to tax impermissible avoidance arrangements.
• Mandates electronic modes for certain transactions and payments.
• Outlines a 'new tax regime' for individuals, HUFs, and certain domestic companies.

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