A Comparative Analysis of Residential Status Provisions: Income Tax Bill 2025 vs Income-tax Act 1961

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.... different categories of taxpayers. This analysis examines the proposed changes in Clause 6 of the Income Tax Bill, 2025, comparing them with Section 6 of the Income-tax Act, 1961, highlighting key modifications and their implications. 2. Objective and Purpose The primary objective of both provisions is to establish clear criteria for determining the residential status of various categories of t....

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....ees * Specific provisions for Indian citizens visiting India 3.3 High-Income Individuals The 2025 Bill introduces more comprehensive provisions for high-income individuals: * Specific threshold of Rs. 15 lakhs (excluding foreign source income) * Modified period of 120 days for certain categories * Clearer deemed residency provisions 3.4 Company Residency Enhanced Definition: * Retent....

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....3 For Tax Administrators * Simplified framework for status determination * Reduced scope for interpretation disputes * Better tools for handling complex cases 5. Comparative Analysis with International Standards The proposed changes align more closely with international best practices: * Enhanced focus on substance over form * Better addressing of high-net-worth individuals * Improve....