With reference to the Income-tax Act, 2025, consider the following statements: 1. It introduces a new, higher tax slab for corporate taxpayers to boost direct tax collection. 2. It eliminates the dual concepts of 'previous year' and 'assessment year', replacing them with a unified 'tax year'. 3. The new Act was enacted after incorporating recommendations from a Parliamentary Select Committee. Which of the statements given above is/are correct?

Question

Accepted Answer

2 and 3 only — Statement 1 is incorrect because the new Act is revenue-neutral and deliberately retains existing tax rates and regimes; it focuses purely on simplifying the law. Statement 2 is correct as it shifts to a simplified 'tax year'. Statement 3 is correct, as the initial bill was withdrawn and revised based on 566 recommendations from a 31-member Select Committee chaired by MP Baijayant Panda.

Passage of Income-tax Act, 2025

Brazilian President Lula da Silva Visits India