Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    NewsBills
    Providing check on survey operations under section 133A of the Act.
    NewsBills
    Provision for e-appeal.
    NewsBills
    Amendment in Dispute Resolution Panel (DRP).
    NewsBills
    Modification of e-assessment scheme.
    NewsBills
    Widening the scope of Commodity Transaction Tax (CTT).
    NewsBills
    Rationalization of tax treatment of employer’s contribution to recognized provident funds, superan...
    NewsBills
    Widening the scope of section 206C to include TCS on foreign remittance through Liberalised Remittan...
    NewsBills
    Widening the scope of TDS on E-commerce transactions through insertion of a new section.
    NewsBills
    Enlarging the scope for tax deduction on interest income under section 194A of the Act.
    NewsBills
    Reducing the rate of TDS on fees for technical services (other than professional services).
    NewsBills
    Allowing deduction for amount disallowed under section 43B, to insurance companies on payment basis.
    NewsBills
    Amendment for providing attribution of profit to Permanent Establishment in Safe Harbour Rules under...
    NewsBills
    Modification of the definition of “business trust”
    NewsBills
    Allowing carry forward of losses or depreciation in certain amalgamations.
    NewsBills
    Deferring TDS or tax payment in respect of income pertaining to Employee Stock Option Plan (ESOP) of...
    NewsBills
    Exempting non-resident from filing of Income-tax return in certain conditions.
    NewsBills
    Providing an option to the assessee for not availing deduction under section 35AD.
    NewsBills
    Increase in safe harbour limit of 5 per cent. under section 43CA, 50C and 56 of the Act to 10 per ce...
    NewsBills
    Excluding interest paid or payable to Permanent Establishment of a non-resident Bank for the purpose...
    NewsBills
    Amendment of section 194LD of the Act to extend the period of concessional rate of withholding tax a...
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    Show AI Summary
    Survey approval requirements: amended hierarchy now mandates higher-level approval before conducting surveys under section 133A.
    Amendment introduces a tiered prior-approval regime for exercise of survey powers: where information is received from a prescribed authority, lower-ranked officers require prior approval from the intermediate supervisory tier; in other cases, officers below the senior administrative tier require prior approval from that senior tier. The change raises the approval threshold in non-prescribed-authority cases and takes effect from the stated effective date.
    NewsBills
    Show AI Summary
    E-appeal scheme to enable faceless electronic appellate proceedings and permit government to modify appellate procedure.
    A proposed insertion to section 250 empowers the Central Government to notify an e-appeal scheme to enable electronic disposal of appeals, eliminate in-person interface between Commissioner (Appeals) and appellants to the extent technologically feasible, optimise resource use through economies of scale and functional specialisation, and introduce an appellate system with dynamic jurisdiction. The power includes directing, by notification, that statutory provisions on jurisdiction and appellate procedure may not apply or may apply with specified exceptions, modifications and adaptations, and requires such notifications to be laid before both Houses of Parliament.
    NewsBills
    Show AI Summary
    Dispute Resolution Panel expansion: added non-resident taxpayers can seek DRP review when AO proposes prejudicial assessment variations.
    Amendment expands the Dispute Resolution Panel (DRP) procedure to require the Assessing Officer to forward a draft assessment order when proposing any variation prejudicial to the assessee, permitting the taxpayer to file objections with the DRP whose binding directions govern the AO. The definition of eligible assessee is widened to include non-resident persons other than companies alongside foreign companies and cases with transfer pricing adjustments.
    NewsBills
    Show AI Summary
    E-assessment scheme expanded to include best-judgement assessments and extend direction power through a temporary sunset period.
    Amendment expands the E-assessment Scheme, 2019 to include best judgement assessment within the scope of the scheme-making power under sub-section (3A) of section 143, and permits the Central Government to issue directions under the provision for a prescribed limited period, effective from the commencement of the stated assessment year.
    NewsBills
    Show AI Summary
    Commodity Transaction Tax expansion: new tax coverage for options in goods and derivatives tied to other derivatives.
    Amendments expand the scope of Commodity Transaction Tax (CTT) to include sales of derivatives based on prices or indices of commodity derivatives and sales of an option in goods, and replace "recognised association" with "recognised stock exchange". The proposal allocates CTT liability by product and settlement mode-seller liability for derivatives based on derivatives' prices or indices, purchaser liability for exercised options in goods with different treatment for physical delivery versus non-delivery settlement-and updates statutory definitions, the CTT schedule, and value computation accordingly.
    NewsBills
    Show AI Summary
    Employer contribution cap to retirement funds: excess employer contributions taxable and related accretions treated as perquisite.
    A combined upper limit is proposed on employer contributions to the National Pension Scheme, superannuation funds and recognized provident funds; employer contributions exceeding the combined cap in a year will be taxable, and annual accretions to the fund relating to such employer contributions shall be treated as a perquisite to the extent included in total income.
    NewsBills
    Show AI Summary
    Tax Collected at Source expanded to cover overseas remittances, tour packages and sales-based collections with specified exemptions.
    Amendments expand Tax Collected at Source (TCS) under section 206C to require authorised dealers to collect TCS on specified overseas remittances under LRS and sellers to collect TCS on sale of overseas tour packages, both with higher rates for non-PAN/Aadhaar cases and specified exemptions. Separately, sellers with turnover above a prescribed threshold must collect TCS on sale of goods above a set consideration limit, subject to notification-based exemptions and exclusions for certain government and diplomatic entities. Provisions take effect from 1 April 2020.
    NewsBills
    Show AI Summary
    TDS on e commerce transactions: operators must withhold on gross platform receipts and treat direct payments as operator credits.
    A new provision imposes TDS on e commerce transactions by requiring the e commerce operator to deduct tax on the gross amount of sales or services when credited to or paid to an e commerce participant; direct payments by purchasers are treated as operator payments. Low volume individual and HUF participants who furnish PAN or Aadhaar are exempt from withholding. The provision overrides other TDS liabilities for the same transactions, excludes operator receipts for unrelated advertising services, and includes definitions and consequential amendments to align withholding and procedural provisions.
    NewsBills
    Show AI Summary
    Tax deduction on interest income: large co-operative societies must withhold tax when turnover and per payee interest exceed specified thresholds.
    The amendment narrows exemptions in section 194A(3) so that a co operative society otherwise exempt under clause (v) or (viia) must deduct tax at source if it exceeds a specified turnover threshold in the preceding year and if the interest credited or paid to a payee in the financial year exceeds specified per payee thresholds, with separate thresholds for senior citizens and others.
    NewsBills
    Show AI Summary
    TDS on technical services adjusted to reduce classification disputes and align withholding with work contract payments.
    To reduce classification disputes and litigation, the law prescribes a reduced withholding rate specifically for fees for technical services (other than professional services), aligning its TDS incidence more closely with that applicable to payments for execution of work contracts; withholding rates for other categories of fees remain unchanged and the amendment takes effect from the commencement date specified in the measure.
    NewsBills
    Show AI Summary
    Deduction timing for Section 43B: insured business expenses disallowed earlier permitted when actually paid.
    A proviso is proposed to Rule 5 of the First Schedule so that any sum added back under Section 43B in accordance with clause (a) of Rule 5 shall be allowed as a deduction in computing income under the rule in the previous year in which such sum is actually paid; the amendment takes effect from 1 April 2020 and applies to assessment year 2020-21 and onwards.
    NewsBills
    Show AI Summary
    Attribution to Permanent Establishment now covered in safe harbour rules and advance pricing agreements, providing transfer pricing certainty.
    Amendments expand Safe Harbour Rules to permit acceptance of declared transfer prices that address attribution of profits to a Permanent Establishment, and amend Advance Pricing Agreement provisions to allow APAs to determine or specify the manner of determining such attribution, thereby extending transfer pricing certainty to both safe harbour and APA mechanisms for future and rollback years.
    NewsBills
    Show AI Summary
    Business trust definition modified: listing requirement removed so tax pass-through and regime apply to unlisted trusts.
    The proposal amends clause (13A) of section 2 to remove the requirement that units be listed on a recognised stock exchange for a trust to qualify as a business trust, aligning the income tax definition with SEBI amendments that eliminated mandatory listing for InvITs; under section 115UA such trusts remain subject to taxation rules including pass through treatment for SPV interest and rent and filing and reporting obligations.
    NewsBills
    Show AI Summary
    Carry forward of losses extended to statutory bank and government insurance company amalgamations under specified nationalisation schemes.
    Section 72AA's allowance for carry forward of accumulated losses and unabsorbed depreciation is extended to include amalgamations of corresponding new banks under the Banking Companies (Acquisition and Transfer of Undertakings) Acts and amalgamations of Government companies arising under the General Insurance Business (Nationalisation) Act, with defined terms to be read from those enactments and the extension operating notwithstanding specified exclusions in the Act.
    NewsBills
    Show AI Summary
    Deferral of TDS on ESOP perquisites allows employers to delay tax deduction until sale or employment cessation.
    Amendments permit eligible start-ups to defer deduction or payment of tax on ESOP perquisites: tax must be deducted or paid within fourteen days of the earliest of (i) expiry of the prescribed post-allotment period, (ii) sale of the specified security or sweat equity share by the employee, or (iii) cessation of employment. Tax is computed using the rates applicable in the financial year when the security or share was allotted or transferred.
    NewsBills
    Show AI Summary
    Non-resident return filing exemption extended to royalty and FTS when withholding tax is applied at prescribed rates.
    A statutory amendment will exempt a non-resident from filing an income-tax return where the non-resident's total income consists solely of dividend or interest, or specified royalty or fees for technical services, provided that withholding tax on such income has been deducted under Chapter XVII-B at rates not lower than the rates prescribed for tax determination under section 115A(1); the amendment takes effect from the stated commencement date and applies to the relevant assessment year and subsequent years.
    NewsBills
    Show AI Summary
    Optional 35AD deduction safeguards right to claim depreciation where assessee forgoes the investment allowance under amended rules.
    The amendment makes the 100% capital expenditure deduction under section 35AD optional and restricts the sub section (4) non allowance rule so that other deductions, including normal depreciation, are disallowed only if the section 35AD deduction has been claimed and allowed; the change applies prospectively to the assessment year beginning 1 April 2020.
    NewsBills
    Show AI Summary
    Safe harbour threshold for stamp valuation adjustments increased, reducing valuation-driven recharacterisation of consideration for transfers.
    Increase of the safe harbour threshold from five per cent to ten per cent for valuation comparisons where declared consideration for transfer or receipt of immovable property is lower than the stamp valuation authority's value, so that a declared consideration within the safe harbour is treated as the full value for computing capital gains or income from other sources; effective from 1st April, 2021 and applying to the relevant assessment year and subsequent years.
    NewsBills
    Show AI Summary
    Interest limitation carve-out excludes debt from permanent establishments of foreign banks from interest disallowance under amended rules.
    The amendment provides that the interest limitation will not apply to interest paid in respect of debt issued by a lender which is a permanent establishment of a non-resident engaged in banking in India, thereby carving out loans from branches of foreign banks from the section 94B restriction and avoiding application of the earnings based disallowance to such debt.
    NewsBills
    Show AI Summary
    Concessional withholding tax extended and applied to municipal debt, enabling foreign investor interest relief within a renewed operative window.
    Amendment to section 194LD extends the concessional withholding tax regime and applies the concessional rate to interest on municipal debt securities by Foreign Institutional Investors and Qualified Foreign Investors, preserving the reduced TDS rate for eligible interest payments and changing the operative period so that interest paid within the newly prescribed window qualifies for the concession, with the amendment taking effect from the start of the specified fiscal period.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters

      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)

      3 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 156 Rebate of income-tax in case of certain individuals.

      Income-tax Act, 2025

      At a Glance

      Clause 156 of the Income Tax Bill, 2025 - (Old Version) provides for a rebate/deduction from income-tax for certain resident individuals based on total income thresholds of Rs. 5,00,000 and Rs. 12,00,000, with monetary caps of Rs. 12,500 and Rs. 60,000 respectively. It affects resident individual taxpayers and the tax department'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-sections setting out the conditions and caps for the deduction.

      Statutory Provision Mode

      Text & Scope

      Clause 156 provides as follows (material elements synthesized):

      • Sub-section (1): A resident individual assessee whose total income does not exceed Rs. 5,00,000 is entitled to a deduction from income-tax (computed before this deduction) equal to 100% of income-tax payable or Rs. 12,500, whichever is less.
      • Sub-section (2): Where a resident individual's total income is chargeable to tax u/s 202(1), deductions from income-tax (computed before this deduction) are allowed as follows: (a) if total income does not exceed Rs. 12,00,000, then 100% of income-tax payable or Rs. 60,000, whichever is less; (b) if income exceeds Rs. 12,00,000, then "the income-tax payable on the total income, reduced by total income which is in excess of twelve lakh rupees."
      • Sub-section (3): The deduction under sub-section (2) shall not exceed income-tax payable as per the rates provided in section 202(1).

      Scope: The relief is available only to resident individual assessees and is expressed as a deduction from income-tax chargeable on total income; it expressly contemplates interaction with section 202(1) tax computation.

      Interpretation

      The clause frames the relief as a deduction from the tax liability (not from gross income). The use of caps (Rs. 12,500 and Rs. 60,000) establishes fixed monetary ceilings. Sub-section (2) differentiates treatment depending on whether total income crosses the 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

      • Example 1: Total income = Rs. 4,50,000; income-tax computed before rebate = Rs. 10,000. Under sub-section (1), deduction = 100% of tax payable (Rs. 10,000) or Rs. 12,500 whichever is less; deduction = Rs. 10,000; net tax = nil.
      • Example 2: Total income = Rs. 11,00,000; income-tax computed before rebate (u/s 202(1)) = Rs. 50,000. Under sub-section (2)(a) deduction = 100% of tax payable or Rs. 60,000 whichever is less; deduction = Rs. 50,000; net tax = nil.
      • Example 3: Total income = Rs. 13,00,000; income-tax computed before rebate = Rs. 80,000. Under sub-section (2)(b) deduction = income-tax payable reduced by the excess over Rs. 12,00,000 (i.e., 80,000 minus 1,00,000) per the Bill's formula. Because that arithmetic would produce a negative number (-Rs. 20,000), the limitation in sub-section (3) and general interpretive principle that deduction cannot be negative means the deduction would effectively be nil; the text states the deduction "shall not exceed income-tax payable" but does not expressly address negative results - consequentially, a reasonable administrative interpretation would yield nil deduction. (Note: precise administrative treatment is Not stated in the document.)

      Interplay

      The clause explicitly interacts with section 202(1) - the rebate in sub-section (2) applies where total income is chargeable to tax under that section and sub-section (3) caps deductions to the tax payable "as per the rates provided in section 202(1)." References to other Rules, Notifications, 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 incomes above Rs. 12 lakh: The Bill (old version) states: "the income exceeds twelve lakh rupees, the income-tax payable on the total income, reduced by total income which is in excess of twelve lakh rupees." The enacted Section states the condition more elaborately: "the total income exceeds twelve lakh rupees and the income-tax payable on such total income exceeds the amount by which the total income is in excess of twelve lakh rupees, an amount equal to the amount by which the income-tax payable on such total income is in excess of the amount by which the total income exceeds twelve lakh rupees."
        • Practical impact: The Bill's wording appears to direct a mechanical reduction of "income-tax payable" by the amount of income in excess of Rs. 12 lakh (a mismatch of units and likely leading to ambiguity/anomalous results). The enacted Section sets a conditional test and then grants a deduction equal to the excess of the tax payable over the excess income-thus the enacted text is clearer and avoids unit-mismatch confusion. In practice, the enacted text limits and clarifies the quantum of rebate available for higher incomes; the Bill's formulation could have produced interpretive and computational difficulties, possibly producing an unintended (and unworkable) formula.
      • Overall clarity and drafting precision: The enacted Section contains more precise conditional language in sub-section (2)(b).
        • Practical impact: reduced ambiguity for assessing officers, taxpayers and tax 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 or exceeds tax payable; the provision's terse phrasing in the Bill may give rise to interpretive disputes as to whether any deduction is permissible in those cases. The Bill text does not state dispute-resolution or administrative guidance; therefore taxpayers and the department may require clarificatory instructions (Not stated in the document).
      • Record-keeping/evidence: The document does not specify documentation or forms required to claim the deduction. Presumably, computation records showing total income and tax computed before the deduction would be relevant; the document itself is Not stated on record keeping.

      Key Takeaways

      • Clause 156 provides a tax rebate (deduction from tax payable) for resident individual assessees with total income thresholds at Rs. 5,00,000 and Rs. 12,00,000.
      • Caps are specified: Rs. 12,500 for incomes up to Rs. 5,00,000; Rs. 60,000 for incomes up to Rs. 12,00,000.
      • For incomes above Rs. 12,00,000, the Bill prescribes a formula reducing tax payable by the excess of income over Rs. 12,00,000; the clause's terse wording may generate interpretive issues when the excess equals or exceeds tax payable.
      • The deduction is expressly subject to not exceeding tax payable u/s 202(1); other procedural and definitional matters are Not stated in the document.
      • Practical application requires careful arithmetic and may necessitate clarificatory guidance from the tax authorities to resolve edge cases arising under clause (2)(b).

      Full Text:

      Section 156 Rebate of income-tax in case of certain individuals.

      Topics

      ActsIncome Tax