1. Clause 2(22): Definition of “Capital Asset” to be aligned with Finance Act, 2025 for consistency with FII and fund-related provisions.
2. Clause 2(55): “Infrastructure capital company” to be redefined without cross-reference to repealed 1961 Act provisions.
3. Clause 22: Standard 30% deduction on house property to be calculated after municipal tax; pre-construction interest deduction extended to let-out properties.
4. Clause 37(1): Clarified that only “otherwise allowable” expenses can be claimed on actual payment basis.
5. Clause 45(2)(c) & 45(3): Scientific research deductions revised to clearly identify when approvals are needed and to avoid interpretational issues.
6. Clause 66: Definitions of “Micro” and “Small” Enterprises to directly mirror MSMED Act, 2006 for uniformity.
7. Clause 71(1)(b): “Parent Company” to be specifically defined to avoid ambiguity in corporate structuring.
8. Clause 79(1): Capital gains provision to reinstate reference to Clause 72 for proper linkage and clarity.
9. Clause 119: Loss carry-forward to be allowed if shareholding continuity (51%) is restored in later years; clarity sought on “beneficial owner.”
10. Clause 124(3): Ambiguity removed by inserting “by such individual” in pension contribution deduction wording.
11. Clause 133(2): Donation deduction limit to be based on “adjusted gross total income,” not “gross total income,” to avoid inflated claims.
12. Clause 145(1)(b): Term “other” to be added back before “biological agents” for deduction on biodegradable waste businesses.
13. Clause 156(2)(b): Rebate clause redrafted to prevent misreading and tax anomalies for incomes around ₹12 lakh.
14. Clause 181: GAAR to reintroduce the phrase “in the circumstances of the case” to ensure fairness in application.
15. Clause 187(a): “Profession” added alongside “business” for mandatory use of prescribed electronic payment modes if receipts exceed ₹50 crore.
16. Clause 189: Definition of “co-operative bank” to be inserted for consistency across clauses 185, 186, and 188.
17. Clause 246(2)(b): Powers of inquiry to include jurisdictional checks in line with existing Section 131(1A).
18. Clause 263(1)(ix): Mandatory ITR filing for refund removed to prevent prosecution for low-income individuals with TDS.
19. Clause 270(1)(a)(v): Late ITR filing disallowance restricted only to Heading C deductions under Chapter VIII, not entire chapter.
20. Clause 332: Definition of “wholly for charitable or religious purposes” to be redrafted for clarity in mixed-objective NPOs.
21. Clause 335: Replaces “receipts” with “income” to avoid taxing gross inflows for NPOs, ensuring real income taxation principle.
22. Clause 337: Religious-cum-charitable trusts to be exempt from 30% tax on anonymous donations, restoring parity from Section 115BBC.
23. Clause 341: “Deemed application” of income to be reinstated for NPOs, helping those with delayed receipts.
24. Clause 357: “Status” of appellant to be defined to align with Clause 356 and facilitate clarity in appeals before CIT(A).
25. Clause 383(2): Fee for advance rulings to be rule-based; fixed amount of ₹10,000 removed for flexibility and clarity.
26. Clause 392(7)(a): Omission of “non obstante” clause corrected to eliminate confusion in PF-related TDS rates.
27. Clause 395: Term “Nil” to be reinstated for TDS certificate issuance, aiding administrative clarity.
28. Clause 432(1): Where income is clubbed, refund entitlement clarified for the assessee in whom income is included.
29. Clause 441: Penalty for not keeping books to be discretionary (“may” instead of “shall”) to protect genuine cases.
30. Clause 505: Non-resident liaison offices allowed 8 months (instead of 60 days) to file statements under simplified compliance.
31. Clause 514: RV qualifications to be specified in the Act, based on review of Comp.Act rules.
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