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REGISTERED NO. DL—(N)04/0007/2003—25
The Gazette of India
EXTRAORDINARY
PART II — Section 2
PUBLISHED BY AUTHORITY
No. 14] NEW DELHI, MONDAY, AUGUST 11, 2025/SRAVANA 20, 1947 (Saka)
Separate paging is given to this Part in order that it may be filed as a separate compilation.
LOK SABHA
___________
The following Bills were introduced in Lok Sabha on 11th August, 2025:—
BILL No. 104 OF 2025
A Bill to consolidate and amend the law relating to income-tax.
BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India,
as follows:––
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Income-tax (No. 2) Act, 2025.
(2) It extends to the whole of India.
(3) Save as otherwise provided in this Act, it shall come into force on the
1st April, 2026.
Short title,
extent and
commencement.
Definitions. 2. In this Act, unless the context otherwise requires,—
(1) “accountant” shall have the meaning assigned to it in section 515(3)(b);
(2) “Additional Commissioner” means a person appointed to be an
Additional Commissioner of Income-tax under section 237(1);
(3) “Additional Director” means a person appointed to be an Additional
Director of Income-tax under section 237(1);
(4) “advance tax” means the advance tax payable as per
Chapter XIX-C;
(5) “agricultural income” means—
(a) any rent or revenue derived from a land which is situated in
India and is used for agricultural purposes;
(b) any income derived from such land by—
(i) agriculture; or
(ii) the performance by a cultivator or receiver of rent-in-kind
of any process ordinarily employed by a cultivator or receiver of
rent-in-kind to render the produce raised or received by him fit to
be taken to market; or
(iii) the sale by a cultivator or receiver of rent-in-kind of the
produce raised or received by him, in respect of which no process
has been performed other than a process of the nature described in
item (ii);
(c) any income derived from any building owned and occupied by
the receiver of the rent or revenue of any such land, or occupied by the
cultivator or the receiver of rent-in-kind, of any such land with respect
to which, or the produce of which, any process mentioned in
sub-clause (b)(ii) and (iii) is carried on, where such building––
(i) is on or in the immediate vicinity of such land and that
land is assessed to land revenue in India, or is subject to a local
rate assessed and collected by officers of the Government as such,
or where the land is not so assessed to land revenue or subject to a
local rate it is not situated in any area as specified in
clause (22)(iii)(A) or (B); and
(ii) is required as a dwelling house, or as a store-house, or
other out-building, by the receiver of the rent or revenue or the
cultivator, or the receiver of rent-in-kind, by reason of his
connection with the land;
(d) any income derived from saplings or seedlings grown in a nursery,
but shall not include––
(i) the income derived from any building or land referred to in
sub-clause (c) arising from the use of such building or land for any
purpose (including letting for residential purpose or for the purpose of
any business or profession) other than agriculture falling under
sub-clause (a) or (b); or
(ii) any income arising from the transfer of any land referred to in
clause (22)(iii)(A) or (B);
(6) “amalgamation”, in relation to companies, means the merger of
one or more companies with another company or the merger of two or more
companies to form one company (the company or companies which so
merge being referred to as the amalgamating company or companies and
the company with which they merge or which is formed as a result
of such merger being referred to as the amalgamated company) in such a
manner that—
(a) all the property of the amalgamating company or companies
immediately before the amalgamation become the property of the
amalgamated company by virtue of the amalgamation;
(b) all the liabilities of the amalgamating company or companies
immediately before the amalgamation become the liabilities of the
amalgamated company by virtue of the amalgamation;
(c) the shareholders holding not less than three-fourths in value of
the shares in the amalgamating company or companies (other than shares
already held therein immediately before the amalgamation by, or by a
nominee for, the amalgamated company or its subsidiary) become
shareholders of the amalgamated company by virtue of the
amalgamation,
otherwise than as a result of the acquisition of the property of one company by
another company pursuant to the purchase of such property by the other company
or as a result of the distribution of such property to the other company after the
winding up of the first-mentioned company;
(7) “annual value”, in relation to any property, means its annual value as
determined under section 21;
(8) “Appellate Tribunal” means the Appellate Tribunal constituted
under section 361;
(9) “approved gratuity fund” means a gratuity fund, which is approved
and continues to be approved by the approving authority as per Part B of
Schedule XI;
(10) “approved superannuation fund” means a superannuation fund or
any part of a superannuation fund, which is approved and continues to be
approved by the approving authority as per Part B of Schedule XI;
(11) “assessee” means a person by whom any tax or any other sum of
money is payable under this Act, and includes––
(a) every person in respect of whom any proceeding under this Act
has been taken––
(i) for the assessment of his income or of the loss sustained
by him or refund due to him; or
(ii) for the assessment of the income of any other person in
respect of which he is assessable, or of the loss sustained by such
other person or refund due to such other person;
(b) every person who is deemed to be an assessee under this Act;
(c) every person who is deemed to be an assessee in default under
this Act;
(12) “Assessing Officer” means—
(a) the Assistant Commissioner or Deputy Commissioner or
Assistant Director or Deputy Director or the Income-tax Officer, who is
vested with the relevant jurisdiction by virtue of directions or orders
issued under section 241(1) or (2) or (3), or any other provision of this
Act; and
(b) the Additional Commissioner or Additional Director or Joint
Commissioner or Joint Director, who is directed under section 241(5)(b)
to exercise or perform all or any of the powers and functions conferred
on, or assigned to, an Assessing Officer under this Act;
(13) “assessment” includes reassessment and recomputation;
(14) “Assistant Commissioner” means a person appointed to be an Assistant
Commissioner of Income-tax or a Deputy Commissioner of Income-tax under
section 237(1);
(15) “Assistant Director” means a person appointed to be an Assistant
Director of Income-tax or a Deputy Director of Income-tax under section 237(1);
(16) “average rate of income-tax” means the rate arrived at by dividing
the amount of income-tax calculated on the total income, by such total income;
(17) “block of assets” means a group of assets falling within a class of
assets comprising of—
(a) tangible assets, being buildings, machinery, plant or furniture;
(b) intangible assets, being know-how, patents, copyrights,
trademarks, licences, franchises or any other business or commercial
rights of similar nature, not being goodwill of a business or profession,
in respect of which the same percentage of depreciation is prescribed;
(18) “Board” means the Central Board of Direct Taxes constituted under
the Central Boards of Revenue Act, 1963;
(19) “books or books of account” includes ledgers, day-books, cash
books, account-books and other books, whether kept––
(a) in written form; or
(b) in electronic or any digital form, or on cloud based storage, or
on any electromagnetic data storage device, such as floppy, disc, tape,
portable data storage device, external hard drives, or memory cards; or
(c) as print-outs of data stored in electronic or digital form or on
storage devices mentioned in sub-clause (b);
(20) “business” includes any trade, commerce or manufacture or any
adventure or concern in the nature of trade, commerce or manufacture;
(21) “business trust” means a trust registered as—
(a) an Infrastructure Investment Trust under the Securities and
Exchange Board of India (Infrastructure Investment Trusts)
Regulations, 2014 made under the Securities and Exchange Board of India
Act, 1992; or
(b) a Real Estate Investment Trust under the Securities and Exchange
Board of India (Real Estate Investment Trusts) Regulations, 2014, made
under the Securities and Exchange Board of India Act, 1992;
(22) “capital asset” means—
(a) property of any kind held by an assessee, whether or not
connected with his business or profession;
(b) any securities held by—
(i) a Foreign Institution Investor which has invested in such
securities in accordance with the regulations made under the
Securities and Exchange Board of India Act, 1992; or
(ii) an investment fund specified in section 224(10)(a) which
has invested such securities in accordance with the provisions of
the regulations made under the Securities and Exchange Board of
India Act, 1992 or under the International Financial Services
Centers Authority Act, 2019;
(c) any unit linked insurance policy to which exemption under
Schedule II (Table: Sl. No. 2) does not apply,
but does not include—
(i) any stock-in-trade, other than the securities referred to in
sub-clause (b), consumable stores or raw materials held for business or
profession;
(ii) personal effects;
(iii) agricultural land in India, not being a land situated––
(A) in any area comprised within the jurisdiction of a
municipality (whether known as a municipality, municipal
corporation, notified area committee, town area committee, town
committee, or by any other name) or a cantonment board and
which has a population of not less than ten thousand; or
(B) in any area within the distance as specified in
column C of the following Table, measured aerially from the
local limits of any municipality or cantonment board referred to in
item (A) and having population as referred to in column B of the
said Table:—
Table
| Sl. No. | Population of municipality or cantonment board | Within distance, measured aerially, from local limits of any municipality or cantonment board not being more than |
| :------ | :--------------------------------------------- | :--------------------------------------------------------------------------------------------------------- |
| A | B | C |