<h1>New Income Tax (No.2) Bill Simplifies Tax Year, Updates TDS Refunds, Dividend Deductions, and Loss Rules</h1> The newly passed Income Tax (No.2) Bill, effective April 1, 2026, replaces the Income Tax Act, 1961, simplifying language and concepts by eliminating assessment and previous years in favor of a single tax year. It allows individuals to claim TDS refunds even if income tax returns are filed after the due date, maintaining provisions from the existing law. The bill also introduces nil TCS on Liberalised Remittance Scheme transactions for education funded by financial institutions, reinstates certain inter-corporate dividend deductions for companies opting for concessional tax rates, and amends loss carry forward and set-off rules. Definitions related to Micro and Small enterprises are aligned with other statutes, and references to beneficial owners have been removed to comply with Section 79. The legislation reflects a taxpayer-oriented approach by addressing industry concerns, including dividend deductions and associated enterprises, as recommended by the Select Committee.