Now, tax authorities can reassess hitherto undisclosed earnings only, and not income that's already been declared.
The Finance Bill 2025, presented by Finance Minister Nirmala Sitharaman, introduces significant changes to the taxation framework, particularly concerning the scrutiny of income in search and seizure cases. The key amendment limits the tax scrutiny to only the undisclosed income found during these operations, rather than the entire income of the assessee. This move aims to reduce the burden on taxpayers by focusing solely on unreported income, thereby streamlining the tax assessment process. The bill also includes provisions to enhance transparency and efficiency in tax administration, ensuring that only relevant income is under scrutiny, which could potentially reduce litigation and disputes related to tax assessments. This amendment reflects the government's intent to foster a more taxpayer-friendly environment while maintaining stringent checks on undisclosed income.
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