-
Jul 28, 2025
-
New Income Tax Bill 2025: 3 key changes that could make ITR filing easier
Filing your income tax return (ITR) may soon become more easier. The Select Committee submitted a report to Parliament, recommending major changes that may improve the annual tax filing experience.
The committee submitted its report to Parliament on 21 July. It’s over 4,500 pages long and includes 285 suggestions to improve the draft New Income Tax Bill, 2025, which is meant to replace the old 1961 Act. Among the many proposals, a few stand out that could directly benefit ordinary taxpayers. Here are three major changes being considered:
NO PENALTY IF YOU’RE FILING JUST FOR REFUND
At present, if you miss the ITR deadline, even if you’re filing just to get a refund, you may be charged a penalty of up to Rs 1,000.
But the committee has recommended a welcome change. If your total income is below the taxable limit and you're filing only to claim a refund, you should not be penalised for missing the deadline.
This move is aimed at small taxpayers and salaried individuals who often file returns just to claim a refund but end up paying fines. It could offer relief to lakhs of people and make the system fairer.
|