The Income Tax Bill, 2025 introduces substantial reforms to ...

Proposed Income Tax Bill Sets Rs. 7.5 Lakh Cap on Employer Contributions and Revamps Perquisite Tax Rules

February 28, 2025

Notes Bill

The Income Tax Bill, 2025 introduces substantial reforms to perquisite taxation, establishing a uniform Rs. 7.5 lakh limit for aggregate employer contributions across funds. Key modifications include consolidation of rent-free and concessional accommodation provisions, streamlined treatment of director/employee benefits, and removal of specific monetary thresholds in favor of prescribed amounts. Medical benefit exemptions are retained for employer-maintained and approved hospitals while eliminating previous reimbursement ceilings. The legislation modernizes compliance through simplified valuation guidelines, standardized contribution limits, and integrated explanations within main provisions. Notable structural changes include removal of detailed computation methods for accommodation benefits and introduction of streamlined annual accretion calculations, representing significant administrative simplification while maintaining core tax principles.

View Source

← Previous Next →

The Income Tax Bill, 2025 introduces substantial reforms to ...

Proposed Income Tax Bill Sets Rs. 7.5 Lakh Cap on Employer Contributions and Revamps Perquisite Tax Rules

February 28, 2025

Notes Bill

You may also like:

Income Tax - Rebate u/s 87A - Benefit of full exemption from Income is extended where the total income is not exceeding Rs. 7 lakhs as computed under the New Tax Regime...

Rejection of declared transaction value under Valuation Rule 12, re-determination of value under Valuation Rules 4-9. Commissioner followed Rule 9, adopted actual values...

Cash transactions proposed to be capped at ₹ 2 lakh

Appellant imported fermented and dried processed Sumatra cocoa beans which failed to conform to IS 8865:2003 standards as per FSSAI and BIS testing. Adjudicating...

Assessment u/s 153A - computation of income from house property. Additions proposed relate to unabated assessment years from 2013-14 onwards where no incriminating...

Income tax relief proposed for salaried individuals and pensioners opting for new tax regime. Standard deduction for salaried employees increased from Rs. 50,000 to Rs....

Addition of fixed deposits and interest thereon in wife's name was deleted as the Revenue could not controvert that the deposits belonged to the assessee's wife from her...

The Income Tax Appellate Tribunal allowed the assessee's appeal against the reopening of assessment u/s 148A of the Income Tax Act. The Assessing Officer had alleged...

Income Tax: To facilitate ease of doing business and reduce compliance burden, it is proposed to amend section 197 to bring section 194Q (tax deduction on purchase of...

ICAI's Suggestions for Review of Income Tax Act, 1961: Tax Deducted at Source (TDS) prosecution proceedings are appropriate only where deductors deliberately do not...

Contravention of Sections 8(1) and 9(1)(f)(i) of the Foreign Exchange Regulation Act, 1973 - receiving foreign exchange payments in 1996-97 through fake export documents...

RATES OF INCOME-TAX for the PY 2022-23 i.e. AY 2023-24 [As per previous year Budget and comparison with Budget 2023 proposals] - Notes In the new tax regime increase the...

The Income Tax Bill 2025 consolidates and modernizes deemed income provisions previously contained in Sections 7 and 8 of ITA 1961. The new Clause 7 creates a unified...

The Indian Finance Minister's upcoming FY2025-26 Budget presentation focuses on critical fiscal metrics and consolidation targets. The government aims to reduce fiscal...

The NFRA held that the Auditors were grossly negligent and failed to exercise due diligence in the audit of a public interest entity, amounting to professional...

Quick Updates: