Comparison of Section 156 "Rebate of income-tax in case of certain individuals." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt's computation of tax liability. Effective date: Not stated in the document. Background & Scope Statutory hook: Clause 156 of the Income Tax Bill, 2025 (Rebate of income-tax in case of certain individuals). The provision is situated under the Bill's rubric "Rebates and reliefs." The clause aims to provide a deduction from income-tax payable for resident individual assessees whose total income falls below specified thresholds. The clause refers to computation "before allowing the deduction under this section" and to tax charged u/s 202(1). Definitions of "resident," "total income," or "income-tax payable" are Not stated in the document (they are presumed to be defined elsewhere in the Bill/Act). The clause contains three sub-sect....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Rs. 12,00,000 threshold. The reference to tax computed "before allowing the deduction under this section" clarifies the order of computation: tax is calculated first, then the rebate/deduction is applied up to the stated limits. The provision's language in clause (2)(b) is formulaic and requires arithmetic reduction of tax payable by the excess of income over Rs. 12,00,000. Exceptions/Provisos No express provisos beyond the numerical thresholds and caps are provided. There is no textual carve-out for non-residents, non-individuals, or particular categories of income; however, the clause is expressly limited to "resident individual assessee." Any other exceptions or exclusions are Not stated in the document. Illustrations * Examp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ications, or Circulars are Not stated in the document. The Bill does not provide procedural rules for claiming the deduction, nor does it reference forms or assessment mechanics; those matters are Not stated in the document. Differences between Section 156 of the Income-tax Act, 2025 and Clause 156 of the Income Tax Bill, 2025 - (Old Version) * Textual framing of subsection (1): The Bill (old version) uses the phrasing "A resident individual assessee" while the enacted Section uses "An assesse, being an individual resident in India." * Practical impact: purely stylistic; no substantive change to coverage (resident individual assessees remain the class eligible). * Subsection (2)(b) - Formulation and clarity of the deduction for incom....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ax practitioners when computing the rebate for incomes exceeding Rs. 12 lakh; lowers litigation risk over interpretation of the mathematical reduction contemplated. * Subsection (3): Both texts contain identical limiting language that deduction under sub-section (2) shall not exceed income-tax payable as per rates in section 202(1). * Practical impact: none; both prohibit the rebate exceeding tax payable under the cited rate provision. Practical Implications * Compliance and risk areas: Taxpayers must determine whether total income is within the specified thresholds and whether tax is chargeable u/s 202(1) to ascertain entitlement. The formula in clause (2)(b) can produce ambiguity where the excess of income over Rs. 12,00,000 equals....