Finance Ministry May Amend Income Tax Bill 2025 to Restore Section 80M for 22% Tax Regime

Last updated: 28 June 2025


Quick Summary
The Finance Ministry is set to amend the draft Income Tax Bill 2025 to reintroduce Section 80M. This section is crucial for companies opting for the 22% concessional tax rate, as it prevents the same dividend income from being taxed twice. The exclusion of Section 80M in the draft bill was reportedly an unintentional oversight, and the ministry aims to rectify this to ensure fair taxation principles are upheld. The draft bill is currently with a Parliamentary Select Committee for review.

The Ministry of Finance is expected to amend the draft Income Tax Bill, 2025, to reinstate Section 80M benefits for companies opting for the 22% concessional tax regime under Section 115BAA. The change aims to ensure fair taxation and eliminate the cascading tax burden on inter-corporate dividends.
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FAQ :

The Finance Ministry is expected to amend the draft Income Tax Bill 2025 to reinstate Section 80M for companies opting for the 22% concessional tax regime.

Section 80M allows companies to deduct dividend income received from another domestic company if they redistribute it to their own shareholders, thus avoiding double taxation.

The draft bill excluded Section 80M for companies opting for the 22% tax rate, while retaining it for other tax regimes, potentially leading to double taxation of dividend income.

According to a senior finance ministry official, the omission of Section 80M for the 22% tax regime in the draft bill appears to have been an inadvertent oversight.

The draft Bill is currently under review by a Parliamentary Select Committee, which is expected to submit its recommendations soon.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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