Analysis of Changes in Deductions from Salaries: Comparing Clause 19 of Income Tax Bill, 2025 with existing sections 16 and 10 of the Income Tax Act, 1961.

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..... deductions allowed from salary income through Clause 19, which aims to consolidate and restructure various deductions currently spread across Sections 16 and 10 of the Income Tax Act, 1961. 2. Key Structural Changes * Consolidation Approach: Clause 19 adopts a tabular format listing all salary-related deductions in one place, making it more organized compared to the current scattered prov .....

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..... cattered provisions Proposed Structure: * Consolidated treatment under Serial Numbers 3-6 of the Table * Clear categorization of different types of gratuity: * Death-cum-retirement gratuity * Defence services gratuity * Payment of Gratuity Act gratuity * Other gratuities 5. Pension and Leave Salary Provisions Existing Framework: * Scattered across Section 10(10A) and 10(10AA) sub- .....

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..... organized provisions * Reduced need for cross-referencing * Clearer computation methodology 2. Administrative Efficiency: * Simplified compliance process * Better understanding for taxpayers * Reduced litigation potential 3. Taxpayer Impact: * More transparent deduction structure * Easier calculation of eligible deductions * Better planning opportunities 9. Conclusion Clause 1 .....

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