New Income Tax Bill 2025: Key Details on Features and Changes in Provisions Impacting the Taxpayers

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Key Takeaways from New Income Tax Bill 2025 to be Introduced in Parliament on 13 February 2025 The government has introduced the new Income Tax Bill 2025, which will be tabled in Parliament on February 13, 2025. After parliamentary committee …

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Section 269SS Not Applicable to Brokers Acting as Agents or Facilitators: ITAT Chennai

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This landmark ruling reinforces the principle that intermediaries operating in a fiduciary capacity are distinct from the principal parties in transactions. It sets a strong precedent for brokers, real estate facilitators, and agents, protecting them from undue penalties under Section …

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Delhi High Court Upholds Section 132(4) of Companies Act & Validates NFRA Rules on Auditor Accountability

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The High Court highlighted that Section 132 was introduced to strengthen regulatory oversight and align audit standards with global best practices. It does not create new liabilities but fills a regulatory gap to enhance transparency, accountability, and audit quality. The …

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Marginal Relief vs. Rebate Under Section 87A of the Income Tax Act, 1961

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The Rebate u/s. 87A reduces tax burden for low-income taxpayers, whereas marginal relief ensures that the tax does not exceed the excess taxable income over the rebate threshold. With the Budget 2025 announcements, significant changes have been introduced to tax …

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Key Updates on Tax & Corporate Law: 1 February 2025

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Latest Updates on Income Tax, GST & Corporate Law: 1 February 2025

Income Tax

Update-1: Tax on income from house property to be levied basis who derived benefit from property: Delhi High Court

The High Court overturned the ITAT’s decision, ruling that the Income Tax Act does not assume equal ownership solely based on a person’s name in the property deed. It emphasized that taxation under Section 22 should be focused on identifying the person entitled to receive income from the property rather than just the legal owner.

The Bench referenced a Supreme Court ruling, stating: “The focus for taxation purposes is to determine who actually receives the income.”

The court also highlighted the distinction in the Income Tax Act between income derived from house property and an interest in property. Consequently, the appeal was allowed, with the court noting: “The Tribunal and authorities below proceeded on the incorrect assumption that since the appellant was a signatory to the sale deed, the income should be deemed to arise in her hands to the extent of 50%.”

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Update-2: TDS credit should be granted if the related income has been reported for taxation, subject to verification.
In a recent update, in the case of DCIT (Exemptions) Vs Deendayal Port Authority Administrative Officer, the Income Tax Appellate Tribunal (ITAT) Ahmedabad upheld the Commissioner of Income Tax (Appeals) [CIT(A)]’s decision to allow ₹168.61 crore as TDS credit to Deendayal Port Authority Administrative Officer for AY 2019-20. The Revenue had contested this, arguing that the credit should be limited to ₹165.66 crore, as originally claimed in the ITR. However, the assessee cited an updated Form 26AS, reflecting a higher credit due to delayed payments and revised TDS filings by Port users.

The CIT(A) accepted this explanation and instructed the Assessing Officer (AO) to verify and allow the correct credit. During the ITAT proceedings, the Departmental Representative (DR) admitted that the Revenue did not dispute the correctness of the TDS credit per Form 26AS. The ITAT found no fault in the CIT(A)’s order and reaffirmed that TDS credit should be granted if the related income has been reported for taxation, subject to verification. Consequently, the tribunal dismissed the Revenue’s appeal and advised tax authorities to exercise discretion in filing appeals to prevent unnecessary litigation and judicial delays.

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Goods & Services Tax (GST)

Update-1: The Jharkhand high court emphasized procedural fairness in tax assessment and remitted the matter back to the Tax department

In the case of VE Commercial Vehicles Ltd. vs Union of India, the Jharkhand High Court reviewed a writ petition challenging an order issued under Section 73 of the JGST Act, 2017, for the financial year 2019-20.

The petitioner objected to the assessment order passed by the 5th respondent following ASMT-10 notices under Rule 99, arguing that it was unclear how tax liabilities in GSTR-3B returns were compared with e-way bill data, as both datasets originate from different sources and serve different purposes. The petitioner also raised concerns about the technical feasibility of such a comparison.

Despite submitting a detailed response on May 24, 2024, the respondent dismissed the objections without proper consideration, merely stating that the reply was “not satisfactory.” The court noted that ASMT-10 serves to engage taxpayers and allow their concerns to be addressed, which was not done appropriately in this case. Consequently, the court quashed the assessment order and directed the respondent to furnish a clear breakdown of the tax discrepancies within two weeks. The petitioner was granted four weeks to respond, after which a personal hearing was to be conducted.

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Also Read: Key Updates on Tax & Corporate Law- 29 January 2025

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Delhi High Court: Tax on House Property Income to be Levied on Beneficiary, Not Just Legal Owner

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The court also highlighted the distinction in the Income Tax Act between income derived from house property and an interest in property. The Delhi High Court has ruled that tax liability on income from house property should be imposed on …

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Income Tax Department Issues Warning on Political Donation Claims: Key Updates for Taxpayers

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Taxpayers who claimed deductions under Section 80GGC of Income Tax Act are advised to verify their claims. The Income Tax Department has launched an SMS campaign to alert taxpayers regarding deductions claimed under Section 80GGC for political donations. This initiative …

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Key Updates on Tax & Corporate Law: 29 January 2025

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Recent Updates on Income Tax, GST, and Corporate Law – 29 January 2025 Income Tax Update 1: CBDT Notification No. 10/2025 – Key Amendments for Venture Capital Funds, Finance Companies, Retail Schemes, and ETFs in IFSCs The Ministry of Finance, …

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Key Amendments for Venture Capital Funds, Finance Companies, Retail Schemes, and ETFs in IFSCs: CBDT Notification No. 10/2025

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These amendments are pivotal for strengthening India’s financial ecosystem and attracting global investments through IFSCs. The Ministry of Finance, via the Central Board of Direct Taxes (CBDT), has introduced pivotal amendments to the Income Tax Rules, 1962. Through Notification No. …

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Proceedings Against Deceased Cannot Continue Against Legal Representatives: Karnataka HC

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If proceedings had been initiated during the Assessee’s lifetime, they could have been validly continued against their legal representatives. In a landmark ruling, the Karnataka High Court in the case of ITO Vs Smt. Preethi has held that any proceedings …

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Key Updates on Tax & Corporate-Law: 27 January 2025

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Recent Updates on Income-tax, GST & Corporate Law – January 27, 2025 Income-Tax Update-1: A Sukanya Samriddhi account can be opened by the guardian immediately after the girl child’s birth until she turns 10 years old. The scheme is exclusively …

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