New Income Tax Bill, 2025: Major Corporate Tax Reforms to Simplify Compliance and Boost Certainty

The Finance Ministry and the Central Board of Direct Taxes (CBDT) have unveiled the New Income Tax Bill 2025, which includes several significant corporate tax reforms aimed at simplifying compliance and providing greater certainty for businesses. These reforms include tax exemptions on dividends, interest, and long-term capital gains for sovereign wealth and pension funds that invest in infrastructure. The new bill also introduces major changes to block assessments in search cases, aiming to streamline the process and improve the ease of doing business. The draft legislation clarifies the standard deduction under the new tax regime, correcting previous drafting errors. These changes signify a concerted effort to create a more business-friendly tax environment and to align India's tax laws with its economic development goals.