Quick Summary
The government has unveiled the New Income Tax Bill, 2025, introducing far-reaching amendments in corporate taxation aimed at simplifying compliance, reducing litigation, and enhancing clarity for businesses. The reforms address long-standing industry concerns such as double taxation of dividend income, Alternate Minimum Tax (AMT) on LLPs, inter-corporate dividend deductions, and the definition of 'beneficial ownership'. Relief on Dividend Double Taxation One of the most significant changes
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FAQ :
The main aim is to simplify corporate tax compliance, reduce litigation, and enhance clarity for businesses.
It restores inter-corporate dividend deductions for companies in the 22% tax regime, preventing dividends from being taxed multiple times when distributed onward.
The Bill clarifies that AMT will only apply to LLPs that avail specific tax deductions, aligning with the current tax framework.
The Bill reverts to the phrase 'beneficially held' instead of 'beneficial owner' to provide clearer guidance on shareholding continuity for loss carry-forward provisions.
The reforms are expected to bring simplicity, stability, and faster growth by removing ambiguity and strengthening India's investment ecosystem, thereby boosting business and investor confidence.
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