Finance Ministry May Amend Income Tax Bill 2025

The Finance Ministry is considering an amendment to the Income Tax Bill 2025 to restore Section 80M for the 22% tax regime. This move aims to provide relief to companies that receive inter-corporate dividends. Section 80M allows for a deduction of income from dividends received by a domestic company from another domestic company. Restoring this section would prevent the cascading effect of taxation on dividends, thereby encouraging inter-corporate investments and improving the ease of doing business. This amendment is expected to particularly benefit holding companies and investment firms operating under the new, lower corporate tax rate, fostering a more efficient corporate tax structure.