National/ Business Desk
12 August
Tv10punjab
The Lok Sabha has passed a new Income Tax (No. 2) Bill, which will allow taxpayers to claim TDS (Tax Deducted at Source) refunds even if they fail to file their income tax returns (ITR) within the set deadline. The bill was introduced by Finance Minister Nirmala Sitharaman amid opposition protests over voter list corrections and alleged vote fraud in Bihar. It was passed through a voice vote.
This bill will replace the Income Tax Act, 1961, from April 1, 2026. Almost all recommendations from the Select Committee have been included. The language of the new bill has been simplified, and unnecessary provisions have been removed to make the law more user-friendly.
The original Income Tax Bill, presented in February 2025, was withdrawn last week. The Select Committee had suggested that the government amend provisions related to TDS refunds for people who miss the ITR filing deadline. Under the new law, taxpayers will now be able to claim TDS refunds even when returns are filed late, providing relief to those facing genuine delays.
The move is expected to benefit many individuals and ensure fairer handling of tax refunds in delayed filing cases.