The Institute of Chartered Accountants or India (ICAI) has been given the task by the Ministry of Finance to investigate the new Income Tax Act 2025 and propose improvements.
The Central Board of Direct Taxes (CBDT) has called for feedback on the bill.
A team of five members was founded by the ICAI to investigate the bill and make recommendations, as reported by the Economic.
This initiative is part of a broader effort to revise the current tax system and to make it more beneficial for investors and taxpayers.
The analysis of the ICAI includes each part of the account with the aim of simplifying processes for companies and individuals.
The new account is intended to find a balance that facilitates smoother business activities and at the same time facilitates the tax burden for private individuals.
Finance Minister Nirmala Sitharaman recently presented the bill in parliament, which indicates a movement to a tax system that is simpler and attractive for investors.
The bill also undergoes detailed investigation by a parliamentary committee.
It will replace the Income Tax Act of 1961 and introduce the term ‘tax year’ to replace ‘assessment year’, by the tax years of new companies that are from their date of establishment, the Press Trust of India.
The bill deals with ambiguities in sections 44ad, 44ae and 44ada, which have consequences for professionals.
It has been set to introduce a refined method for profit calculation by defining “profit that claims to have actually been earned”.
In December 2024, the ICAI recommended a specialized tax regime for partnership companies, which are currently taxed at 30%.
It also proposed a surcharge of 12% in the incomes of more than RS10M ($ 115.16 million).
Last week, the Icai announced the appointment by Charanjot Singh Nanda as his 73rd president for the term 2025–26.
“India’s icai to assess income tax 2025 to propose improvements” was originally made and published by The accountantA brand of global data.
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