The Finance Bill, 2025, proposes several key changes in the Income Tax Act, 1961, to continue reforms in the direct tax system through tax reliefs, removing difficulties faced by taxpayers, and rationalizing1 various provisions. Here are some of the key changes:
Clarification regarding commencement date and the end date of the period stayed by the Court
Exclusion of Stay Period: Several sections in the Income Tax Act allow for the exclusion of the period during which court proceedings stay assessment proceedings.
Ambiguity in Dates: There is ambiguity regarding the start and end dates of the period to be excluded.
Clarification: The Bill clarifies that the excluded period starts on the date the stay is granted and ends on the date the jurisdictional tax authority receives a certified copy of the order vacating the stay.
Effective Date: This amendment will take effect from April 1, 2025.
XVIII. Clarification regarding commencement date and the end date of the period stayed by the Court
Section 144BA, section 153, section 153B, section 158BE, section 158BFA, section 263, section 264 and Rule 68B of Schedule-II of the Act, inter-alia, provide that the period during which the proceedings under respective provisions are stayed by an order or injunction of any court shall be excluded in computing the time limit for the conclusion of the proceedings.
However, there was an ambiguity regarding the commencement date and the end date of the period stayed by an order or injunction of any court which was required to be excluded.
With a view to removing any ambiguity, it is proposed to amend the said provisions of the Act so as to exclude the period commencing on the date on which stay was granted by an order or injunction of any court and ending on the date on which a certified copy of the order vacating the stay was received by the jurisdictional Principal Commissioner or Commissioner (Approving panel in case of section 144BA of the Act).
This amendment will take effect from the 1st day of April, 2025.
[Clauses 41, 43, 44, 49, 50, 72, 73 & 86]