Income Tax Bill 2025: In a significant development on Monday the Lok Sabha passed the Income Tax Bill 2025 formally replacing the 63-year-old tax code with a modernised legal framework designed to align with evolving economic realities. Marking a significant step towards replacing India’s six-decade-old direct tax framework the government seeks to balance investor confidence taxpayer relief and administrative efficiency with the passage of the new bill. Finance Minister Nirmala Sitharaman tabled the revised bill in the house following the government’s decision to withdraw the earlier draft presented on February 13 2025. As per a report carried by IANS news agency the old version of the bill had been sent to a Parliamentary Select Committee for review but was withdrawn on August 8 to prevent confusion arising from multiple iterations.  Key features of Income Tax Bill 2025: -- Deductions under Section 80M of the 1961 Act (Clause 148 of the IT Bill 2025) are also available to companies that have opted for the new regime. -- Deductions for commuted pension and gratuity for family members are provided under Clause 93 of the 2025 bill. -- Provisions of MAT (Minimum Alternate Tax) and AMT (Alternate Minimum Tax) are separated as two sub-sections under Section 206 -- The provisions of AMT apply only to those non-corporates that have claimed deductions. LLPs that have only capital gains income are not liable for AMT if there is no claim for deduction. -- The term profession has been added after business in clause 187 to enable professionals with total receipts exceeding Rs 50 crore in a year to have the facility of prescribed electronic modes of payment. -- Flexibility has been provided for allowing refund claims in cases where the return is not filed in due time with the removal of Clause 263(1)(ix). -- The provisions related to carry forward and set off of losses have been re-drafted for better presentation but with the same intent. --The utilisation of capital gains on the acquisition of a new capital asset shall be treated as application of income by a registered non-profit organisation as was in the existing act. (With inputs from agencies)