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Jul 23, 2025
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Bizarre I-T law to penalise taxpayer to change soon: Income Tax Bill 2025 may give relief to specified small taxpayers filing ITR only to claim tax refunds
How would you feel if you filed your ITR late to claim a legitimate tax refund, but ended up getting penalized for it, especially when the I-T law does not even require you to file an ITR? Isn't this bizarre? But don't worry, things are going to change soon.
One of the key recommendations from the Lok Sabha’s select committee on the New Income-Tax Bill, 2025 is on tax refunds and ITR filing. The committee said that if any specified small taxpayer wants to file an Income Tax Return (ITR) just to claim a tax refund, they can do so even after the original ITR filing deadline has passed, without the fear of penalties. This means if you are a small taxpayer looking to claim a tax refund but missed the July 31 deadline, it's not a big deal anymore. You can still file your ITR on or before December 31, 2025, without attracting any penal provisions.
Read below to know who is eligible for this relaxation and what the select committee recommended.
What did the select committee of Lok Sabha recommend?
According to the press release dated July 21, 2025, here’s what the select committee said:
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