The Institute of Chartered Accountants of India (ICAI) has been tasked by the Finance Ministry to scrutinise the new Income Tax Bill 2025 and propose enhancements.
The Central Board of Direct Taxes (CBDT) has called for feedback on the bill.
A five-member team has been established by the ICAI to examine the bill and offer recommendations, as reported by the Economic Times.
This initiative is part of a broader effort to overhaul the current tax system and make it more conducive for investors and taxpayers.
The ICAI’s analysis covers each section of the bill with the objective of simplifying processes for businesses and individuals.
The new bill is intended to strike a balance that facilitates smoother business activities while easing the tax burden on individuals.
Finance Minister Nirmala Sitharaman recently presented the bill in parliament, signalling a move towards a tax system that is simpler and more appealing to investors.
The bill is also undergoing detailed examination by a parliamentary committee.
It will replace the Income Tax Act of 1961, introducing the term ‘tax year’ to replace ‘assessment year’, with new businesses’ tax years starting from their date of incorporation, reported the Press Trust of India.
The bill addresses ambiguities in sections 44AD, 44AE and 44ADA, which have implications for professionals.
It is set to introduce a refined method for profit computation by defining “profit claimed to have been actually earned”.
In December 2024, the ICAI recommended a specialised tax regime for partnership companies, which are currently taxed at 30%.
It also proposed a 12% surcharge on incomes exceeding Rs10m ($115.16m).
Last week, the ICAI announced the appointment of Charanjot Singh Nanda as its 73rd president for the term 2025–26.
