The Taxation Laws (Amendment) Act, 2025 No. 29 of 2025

jftLVªh lañ Mhñ ,yñ—¼,u½04@0007@2003—25 REGISTERED NO. DL—(N)04/0007/2003—25 सी.जी.-डी.xएxलx.G-अI.D-2H20x8x2x025-265618 CG-DL-E-22082025-265618 xxxGIDExxx vlk/kkj.k EXTRAORDINARY Hkkx II — [k.M 1 PART II — Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 34] ubZ fnYyh] c`gLifrokj] vxLr 21] 2025@Jko.k 30] 1947 ¼'kd½ No. 34] NEW DELHI, THURSDAY, AUGUST 21, 2025/SHRAVANA 30, 1947 (Saka) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA 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:— BillNo. 105-F of2025 THE TAXATION LAWS (AMENDMENT) ACT, 2025 THE TAXATION LAWS (AMENDMENT) BILL, 2025 No. 29 of 2025 (AS PASSED BY THE HOUSES OF PARLIAMENT[) 2 1st August, 2025.] A An Act further to amend the IncomeB-tIaLxL A ct, 1961 and to amend the Finance Act, 2025. further to amend the Income-tax Act, 1961 and to amend the Finance Act, 2025. BBe E iitt eennaacctteedd bbyy PPaarrlliiaammeenntt iinn tthhee SSeevveennttyy--ssiixxtthh YYeeaarr o of ft hthee R Reeppuubblilcic o of fI ndia Iansd fioal laosw fso:—llo ws:— CHAPTER I PRELIMINARY 1.This Act may be called the Taxation Laws (Amendment) Act, 2025. Short title. CHAPTER II AMENDMENTS IN THE INCOME-TAX ACT, 1961 43 of 1961. 2. In the Income-tax Act, 1961 (hereafter in this Chapter referred to as the Amendment of Income-tax Act), in section 10, with effect from the 1st day of April, 2025,— section 10.2 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— 2 (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.”. Amendment of 3.In the Income-tax Act, in section 16, in clause (ia), in the proviso, after the section 16. 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. Amendment of 4. In the Income-tax Act, in section 80CCD, with effect from the 1st day of section 80CCD. 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.”;Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 3 (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 7 of 2025. 5.In section 49 of the Finance Act, 2025, after clause (b), the following clause Amendment of shall be inserted and shall be deemed to have been inserted with effect from section 49. 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.”;’. ————— The above Bill has been passed by the Houses of Parliament. I hereby certify that this Bill is a Money Bill within the meDaRni.n RgA oJf IaVrt iMcleA 1N1I0, Secretary to the Govt. of India. of the Constitution of India. Dated the Speaker. ————— I assent to this Bill. UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054. MGIPMRND—170GID(Sa4t)e—d2 t2h-8e- 2025. President.