Analysis of Salary Taxation: Section 15 of Income Tax Act 1961 vs Clause 15 of Income Tax Bill 2025

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..... the proposed changes in Clause 15 of the Income Tax Bill, 2025. The provisions relate to the charging of income under the head "Salaries" and form a crucial part of India's direct taxation framework. 2. Objective and Purpose The primary objective of both provisions is to establish the scope and basis for taxing salary income. They define what constitutes taxable salary income and when such i .....

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..... g. b) Employer Reference * Current Act: Explicitly mentions "employer or a former employer" in clauses (a), (b), and (c) * Proposed Bill: a) Uses only "employer" in the main clauses b) Introduces a separate subsection (2) stating "employer includes former employer" Impact: More concise drafting while maintaining the same scope c) Treatment of Advance Salary * Current Act: Contain .....

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..... isting practices 5. Comparative Analysis with Other Jurisdictions The proposed changes align with international best practices in tax legislation drafting, particularly in: * Using more contemporary terminology * Providing clearer statutory structure * Maintaining consistency in treatment of various forms of salary income 6. Conclusion The proposed Clause 15 represents a structural impro .....

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