Finance Ministry Says No to IBC Loan Waiver Exemption in Income Tax Bill 2025

The Finance Ministry has stated "no to IBC (Insolvency and Bankruptcy Code) loan waiver exemption in the Income Tax Bill, 2025." This implies that any waiver or reduction of loans under the IBC process will continue to be treated as income in the hands of the corporate debtor for tax purposes, without specific exemption. This decision underscores the government's stance on maintaining the taxability of such benefits, ensuring that tax revenue is not forgone even in insolvency resolutions, and preventing potential misuse.