August 11, 2025

The Lok Sabha created a buzz on Monday by approving a fresh Income Tax Bill without any debate! This new law will replace tax rules that have been around for over 60 years, making India’s tax system simpler and sharper. Finance Minister Nirmala Sitharaman introduced this revamped Bill at 2 pm, and by 4 pm, it was passed quickly. What’s exciting? From April 1, 2026, taxpayers can claim TDS (Tax Deducted at Source) refunds even if they miss the regular deadline to file their income tax returns. This is a huge relief for many! The Select Committee recommended this smart change to help people get their money back even if they file late. The Bill also brings in cool updates like digital tax rules, better ways to solve tax disputes, and new technology-driven methods to catch more tax revenue. The CBDT (Central Board of Direct Taxes) shared that while some terms like "receipt" have changed back to "income," the gist stays familiar, keeping things clear for everyone. Other spicy details keep house property owners happy by clarifying how much they can deduct from income, including a neat 33% standard deduction on rental income. Changes also fix errors in how rebates are calculated for people earning below certain limits. Good news continues: the previous rule forcing 15% of regular income to be invested in specified ways is now gone! Also, the time to correct TDS statements shrinks from six years down to two, easing the burden on taxpayers waiting for refunds. In short, this Bill promises a modern, fair, and easier tax system for all Indians. With technology and clear rules, paying taxes just got a lot less scary. As Finance Minister Nirmala Sitharaman said while presenting the Bill, the new income tax law will "help individuals to claim TDS refunds even if they fail to file their income tax return by the due date." Let’s get ready for a simpler tax season starting 2026!

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Tags: Income tax bill, Tds refund, Finance minister nirmala sitharaman, Income tax 2026, Cbdt, Tax reform,