New Income Tax Bill 2025: What Small Taxpayers Need to Know
Thank you for reading this post, don't forget to subscribe!A new tax bill, passed by the Lok Sabha, has clarified some rules for taxpayers, but a key change many hoped for hasn’t been included. Here’s a breakdown of the two major points:
1. Small Taxpayers Must Still File to Get a Refund
Despite recommendations from a parliamentary committee, the new bill does not exempt small taxpayers from filing an income tax return just to claim a refund.
- The Rule: Section 433 of the bill explicitly states that a refund can only be claimed by filing a return.
- Who it Affects: This means that many small taxpayers, including senior citizens, whose income is below the basic exemption limit but from whom tax has been deducted at source (TDS), are still required to file a return to get that money back.
- The Concern: Experts point out that this could lead to prosecution for non-filing, even for those who technically don’t owe any taxes.
2. Belated Returns Can Now Claim Refunds
The new law brings good news for those who file late. It removes previous ambiguity and confirms that taxpayers who file a belated or revised return after the due date are still entitled to a refund on any excess taxes paid.
