Overview

• The Select Committee adopted a 285-point report on July 16 that removes the mandatory ITR requirement for claiming TDS refunds by low-income taxpayers.
• Under the new proposal, individuals earning up to ₹12.75 lakh can use a single form tied to their Form 26AS statement to recover deducted TDS without filing a full return.
• The revised Income-Tax Bill 2025 is slated for tabling in the Lok Sabha on July 21, with the law due to take effect from April 1, 2026.
• Committee recommendations also explicitly authorize tax officials to access digital devices and electronic records to boost administrative efficiency.
• The overhaul builds on Budget 2024’s ‘Viksit Bharat’ agenda and over 20,000 stakeholder submissions to simplify direct tax laws and curb litigation.