Full Text
REGISTERED NO. DL-(N)04/0007/2003-25
The Gazette of India
CG-DL-E-22082025-265618
EXTRAORDINARY
PART II — Section 1
PUBLISHED BY AUTHORITY
No. 34] NEW DELHI, THURSDAY, AUGUST 21, 2025/SHRAVANA 30, 1947 (Saka)
Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 21st August, 2025/Shravana 30, 1947 (Saka)
The following Act of Parliament received the assent of the President on the
21st August, 2025 and is hereby published for general information:-
THE TAXATION LAWS (AMENDMENT) ACT, 2025
No. 29 OF 2025
[21st August, 2025.]
An Act further to amend the Income-tax Act, 1961 and to amend the Finance
Act, 2025.
BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India
as follows:-
CHAPTER I
PRELIMINARY
1. This Act may be called the Taxation Laws (Amendment) Act, 2025.
CHAPTER II
AMENDMENTS IN THE INCOME-TAX ACT, 1961
2. In the Income-tax Act, 1961 (hereafter in this Chapter referred to as the
Income-tax Act), in section 10, with effect from the 1st day of April, 2025, —
43 of 1961.
Short title.
Amendment of
section 10.
(a) after clause (12A), the following clauses shall be inserted and shall
be deemed to have been inserted, namely:-
"(12AA) any payment from the National Pension System Trust to an
assessee, who is a subscriber to the Unified Pension Scheme, to the extent
that it does not exceed sixty per cent. of the individual corpus, as specified
in notification number FX-1/3/2024-PR, dated the 24th January, 2025 of the
Department of Financial Services, made at the time of his superannuation
or voluntary retirement or retirement under clause (j) of rule 56 of the
Fundamental Rules [which is not treated as penalty under the Central Civil
Services (Classification, Control and Appeal) Rules, 1965];
(12AB) any sum received as lump sum amount as per clause (vi)
of paragraph 2 of the notification number FX-1/3/2024-PR, dated the
24th January, 2025 of the Department of Financial Services, by an
assessee being a subscriber to the Unified Pension Scheme;";
(b) in clause (23FE), in Explanation 1, after clause (c), the following
clause shall be inserted and shall be deemed to have been inserted, namely:-
"(d)(i) the Public Investment Fund of the Government of the
Kingdom of Saudi Arabia; and
(ii) a wholly owned subsidiary of the Public Investment Fund of
the Government of the Kingdom of Saudi Arabia, which—
(A) is a resident of Saudi Arabia; and
(B) makes investment, directly or indirectly, out of the fund
owned by the said Government.".
3. In the Income-tax Act, in section 16, in clause (ia), in the proviso, after the
word, brackets and figures "clause (ii)", the words, brackets and figures
"or clause (iii)" shall be inserted and shall be deemed to have been inserted with
effect from the 1st day of April, 2025.
4. In the Income-tax Act, in section 80CCD, with effect from the 1st day of
April, 2025,
(a) after sub-section (3), the following sub-section shall be inserted and
shall be deemed to have been inserted, namely:—
"(3A) Where any amount standing to the credit of the assessee,
being a subscriber to the Unified Pension Scheme, in his account
referred to in sub-section (1) or sub-section (1B), in respect of which a
deduction has been allowed under those sub-sections or sub-section (2),
together with the amount accrued thereon, if any, is received by the
assessee or his nominee, in whole or in part, in any previous year on
account of his superannuation or voluntary retirement or retirement
under clause (j) of rule 56 of the Fundamental Rules [which is not treated
as penalty under the Central Civil Services (Classification, Control and
Appeal) Rules, 1965], as may be applicable, the whole of the amount
shall be deemed to be the income of the assessee or his nominee, as the
case may be, in the previous year in which such amount is received, and
shall accordingly be charged to tax as income of that previous year.";
(b) after sub-section (5), the following sub-section shall be inserted and
shall be deemed to have been inserted, namely:-
"(6) For the purposes of sub-section (3A), the assessee shall be
deemed not to have received any amount in the previous year if such amount
is transferred to pool corpus from individual corpus on account of
his superannuation or voluntary retirement or retirement under
clause (j) of rule 56 of the Fundamental Rules [which is not treated
as penalty under the Central Civil Services (Classification, Control
and Appeal) Rules, 1965], as may be applicable.";
Amendment of
section 16.
Amendment of
section 80CCD.
Sec. 1]
(c) for the Explanation, the following Explanation shall be substituted
and shall be deemed to have been substituted, namely:—
‘Explanation. For the purposes of this section,—
(i) "pool corpus” and “individual corpus" shall have the same
meanings as assigned to them in notification number FX-1/3/2024-PR,
dated the 24th January, 2025, of the Department of Financial
Services;
(ii) "salary" includes dearness allowance, if the terms of
employment so provide, but excludes all other allowances and
perquisites.'.
CHAPTER III
AMENDMENT IN THE FINANCE ACT, 2025
5. In section 49 of the Finance Act, 2025, after clause (b), the following clause
shall be inserted and shall be deemed to have been inserted with effect from
the 1st day of September, 2024, namely:—
'(ba) for sub-section (2), the following sub-section shall be substituted,
namely:-
"(2)(a) The assessment or reassessment or recomputation under
the provisions of this Act (other than this Chapter), if any, pertaining to
any assessment year falling in the block period, pending on the date of
initiation of the search under section 132, or making of requisition under
section 132A, as the case may be, shall abate and shall be deemed to
have been abated on the date of initiation of search or making of
requisition.
(b) Any proceeding for assessment or reassessment or
recomputation under any provision of this Act (other than this Chapter)
pertaining to any assessment year falling in the block period (other than
the assessment year in which the last of the authorisations for a search is
executed or requisition is made), for which a notice has been issued
during the period commencing on the date of initiation of search under
section 132 or making of requisition under section 132A and ending on
the date of making of order under clause (c) of sub-section (1) of
section 158BC, shall abate and shall be deemed to have been abated on
the date of issue of such notice.";'.
7 of 2025.
Amendment of
section 49.
DR. RAJIV MANI,
Secretary to the Govt. of India.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI-110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054.
MGIPMRND—170GI (S4)—22-8-2025.
Digitally signed
by KSHITIZ
KSHITIZ MOHAN
MOHAN Date: 2025.08.22
13:15:27 +05'30'