Introduction to Income Tax Bill, 2025: Complete list of Clauses, Chapters and Schedules!

The Income Tax Bill, 2025 is a comprehensive legislative reform introduced to replace the existing Income-tax Act, 1961. This bill aims to simplify, modernize, and streamline India’s direct tax system by eliminating redundant provisions, reducing complexity, and enhancing compliance. It introduces a clearer structure, updated definitions, and improved procedural mechanisms for ease of understanding and implementation.

The Income Tax Bill, 2025 consists of:

23 Chapters covering various aspects of taxation, including chargeability, computation of income, deductions, set-off and carry-forward of losses, anti-avoidance measures, tax administration, and special provisions for different categories of taxpayers.
536 Sections, systematically arranged to remove inconsistencies and ensure coherence in tax law.
16 Schedules, which provide detailed frameworks for tax rates, exemptions, deductions, compliance procedures, and special provisions for different types of taxpayers, businesses, and organizations.

The bill introduces key changes such as:

The replacement of ‘Assessment Year’ with ‘Tax Year’ for better clarity.
A revised structure of exemptions and deductions to align with modern economic realities.
Greater focus on digital transactions and electronic compliance to improve efficiency and reduce tax evasion.
Enhanced anti-avoidance rules to curb tax evasion strategies.

This bill is expected to increase transparency, improve taxpayer compliance, and foster a business-friendly environment, ultimately contributing to the nation’s economic growth.

Table showing the chapters and section numbers covered in the Income Tax Bill, 2025:

Chapter No.	Chapter Title	Sections Covered

Chapter I

PRELIMINARY

1 – 3

Chapter II

BASIS OF CHARGE

4 – 10

Chapter III

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

11 – 12

Chapter IV

COMPUTATION OF TOTAL INCOME

13 – 95

Chapter V

INCOME OF OTHER PERSONS, INCLUDED IN TOTAL INCOME OF ASSESSEE

96 – 100

Chapter VI

AGGREGATION OF INCOME

101 – 107

Chapter VII

SET OFF, OR CARRY FORWARD AND SET OFF OF LOSSES

108 – 121

Chapter VIII

DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME

122 – 154

Chapter IX

REBATES AND RELIEFS

155 – 160

Chapter X

SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX

161 – 177

Chapter XI

GENERAL ANTI-AVOIDANCE RULE

178 – 184

Chapter XII

MODE OF PAYMENT IN CERTAIN CASES, ETC.

185 – 189

Chapter XIII

DETERMINATION OF TAX IN SPECIAL CASES

190 – 235

Chapter XIV

TAX ADMINISTRATION

236 – 261

Chapter XV

RETURN OF INCOME

262 – 267

Chapter XVI

PROCEDURE FOR ASSESSMENT

268 – 301

Chapter XVII

SPECIAL PROVISIONS RELATING TO CERTAIN PERSONS

302 – 355

Chapter XVIII

APPEALS, REVISION AND ALTERNATE DISPUTE RESOLUTIONS

356 – 389

Chapter XIX

COLLECTION AND RECOVERY OF TAX

390 – 430

CHAPTER XX

REFUNDS

431 – 438

Chapter XXI

PENALTIES

439 – 472

CHAPTER XXII

OFFENCES AND PROSECUTION

473 – 498

CHAPTER XXIII

MISCELLANEOUS

499 – 536

Complete list of sections in the Income Tax Bill, 2025:

Chapter I – Preliminary

Section 1: Short title, extent, and commencement
Section 2: Definitions
Section 3: Definition of “tax year”

Chapter II – Basis of Charge

Section 4: Charge of income-tax
Section 5: Scope of total income
Section 6: Residence in India
Section 7: Income deemed to be received
Section 8: Income on receipt of capital asset or stock-in-trade by specified person from specified entity
Section 9: Income deemed to accrue or arise in India
Section 10: Apportionment of income between spouses governed by Portuguese Civil Code

Chapter III – Incomes Which Do Not Form Part of Total Income

A. Incomes Not to Be Included in Total Income

Section 11: Incomes not included in total income

B. Incomes Not to Be Included in Total Income of Political Parties and Electoral Trusts

Section 12: Incomes not included in total income of political parties and electoral trusts

Chapter IV – Computation of Total Income

A. Heads of Income

Section 13: Heads of income
Section 14: Income not forming part of total income and expenditure in relation to such income

B. Salaries

Section 15: Salaries
Section 16: Income from salary
Section 17: Perquisites
Section 18: Profits in lieu of salary
Section 19: Deductions from salaries

C. Income from House Property

Section 20: Income from house property
Section 21: Determination of annual value
Section 22: Deductions from income from house property
Section 23: Arrears of rent and unrealized rent received subsequently
Section 24: Property owned by co-owners
Section 25: Interpretation

D. Profits and Gains of Business or Profession

Section 26: Income under head “Profits and gains of business or profession”
Section 27: Manner of computing profits and gains of business or profession
Section 28: Rent, rates, taxes, repairs, and insurance
Section 29: Deductions related to employee welfare
Section 30: Deduction on certain premium
Section 31: Deduction for bad debt and provision for bad and doubtful debt
Section 32: Other deductions
Section 33: Deduction for depreciation
Section 34: General conditions for allowable deductions
Section 35: Amounts not deductible in certain circumstances
Section 36: Expenses or payments not deductible in certain circumstances
Section 37: Certain deductions allowed on actual payment basis only
Section 38: Certain sums deemed as profits and gains of business or profession
Section 39: Computation of actual cost
Section 40: Special provision for computation of cost of acquisition of certain assets
Section 41: Written down value of depreciable asset
Section 42: Capitalising the impact of foreign exchange fluctuation
Section 43: Taxation of foreign exchange fluctuation
Section 44: Amortisation of certain preliminary expenses
Section 45: Expenditure on scientific research
Section 46: Capital expenditure of specified business
Section 47: Expenditure on agricultural extension project and skill development project
Section 48: Tea development account, coffee development account and rubber development account
Section 49: Site Restoration Fund
Section 50: Special provision in the case of trade, profession, or similar association
Section 51: Amortisation of expenditure for prospecting certain minerals
Section 52: Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc.
Section 53: Full value of consideration for transfer of assets other than capital assets in certain cases
Section 54: Business of prospecting for mineral oils
Section 55: Insurance business
Section 56: Special provision in case of interest income of specified financial institutions
Section 57: Revenue recognition for construction and service contracts
Section 58: Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents.
Section 59: Chargeability of royalty and fee for technical services in hands of non-residents.
Section 60: Deduction of head office expenditure in case of non-residents
Section 61: Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents.
Section 62: Maintenance of books of account.
Section 63: Tax audit.
Section 64: Facilitating payments in electronic modes
Section 65: Special provision for computing deductions in case of business reorganisation of co-operative banks.
Section 66: Interpretation of “Profits and gains of business or profession”

E. Capital Gains

Section 67: Capital gains
Section 68: Capital gains on distribution of assets by companies in liquidation
Section 69: Capital gains on purchase by company of its own shares or other specified securities
Section 70: Transactions not regarded as transfer
Section 71: Withdrawal of exemption in certain cases
Section 72: Mode of computation of capital gains
Section 73: Cost with reference to certain modes of acquisition
Section 74: Special provision for computation of capital gains in case of depreciable assets
Section 75: Special provision for cost of acquisition in case of depreciable asset
Section 76: Special provision for computation of capital gains in case of Market Linked Debenture
Section 77: Special provision for computation of capital gains in case of slump sale
Section 78: Special provision for full value of consideration in certain cases
Section 79: Special provision for full value of consideration for transfer of share other than quoted share
Section 80: Fair market value deemed to be full value of consideration in certain cases
Section 81: Advance money received
Section 82: Profit on sale of property used for residence
Section 83: Capital gains on transfer of land used for agricultural purposes not to be charged in certain cases
Section 84: Capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases
Section 85: Capital gains not to be charged on investment in certain bonds
Section 86: Capital gains on transfer of certain capital assets not to be charged in case of investment in residential house
Section 87: Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area
Section 88: Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone
Section 89: Extension of time for acquiring new asset or depositing or investing amount of capital gains
Section 90: Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”
Section 91: Reference to Valuation Officer

F. Income from Other Sources

Section 92: Income from other sources
Section 93: Deductions
Section 94: Amounts not deductible
Section 95: Profits Chargeable to Tax

Chapter V – Income of Other Persons, Included in Total Income of Assessee

Section 96: Transfer of income without transfer of assets
Section 97: Chargeability of income in transfer of assets
Section 98: “Transfer” and “revocable transfer” defined
Section 99: Income of individual to include income of spouse, minor child, etc.
Section 100: Liability of person in respect of income included in income of another person

Chapter VI – Aggregation of Income

Section 101: Total income
Section 102: Unexplained credits
Section 103: Unexplained investment
Section 104: Unexplained asset
Section 105: Unexplained expenditure
Section 106: Amount borrowed or repaid through negotiable instrument, hundi, etc.
Section 107: Charge of tax

Chapter VII – Set Off, or Carry Forward and Set Off of Losses

Section 108 – 121: Various provisions related to set-off and carry forward of losses

Chapter VIII – Deductions to Be Made in Computing Total Income

Section 122 – 154: Various deductions related to life insurance, pension schemes, donations, interest on loans, etc.

Chapter IX – Rebates and Reliefs

Section 155 – 160: Various rebates and reliefs including double taxation relief

Chapter X – Special Provisions Relating to Avoidance of Tax

Section 161 – 177: Rules regarding transfer pricing, international transactions, and avoidance of tax

Chapter XI – General Anti-Avoidance Rule

Section 178 – 184: Provisions related to impermissible avoidance arrangements and their consequences

Chapter XII – Mode of Payment in Certain Cases, Etc.

Section 185 – 189: Rules about taking or repaying loans, accepting payments, and electronic transactions

Chapter XIII – Determination of Tax in Special Cases

A.—Determination of tax in certain special cases
Section 190: Determination of tax where total income includes income on which no tax is payable.
Section 191: Tax on accumulated balance of recognised provident fund.
Section 192: Tax in case of block assessment of search cases.
Section 193: Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.
Section 194: Tax on certain incomes.
Section 195: Tax on income referred to in section 102 or 103 or 104 or 105 or 106.
B.—Special provisions relating to tax on capital gains
Section 196: Tax on short-term capital gains in certain cases.
Section 197: Tax on long-term capital gains.
Section 198: Tax on long-term capital gains in certain cases.
C.—New tax regime
Section 199: Tax on income of certain manufacturing domestic companies.
Section 200: Tax on income of certain domestic companies.
Section 201: Tax on income of new manufacturing domestic companies.
Section 202: New tax regime for individuals, Hindu undivided family and others.
Section 203: Tax on income of certain resident co-operative societies.
Section 204: Tax on income of certain new manufacturing co-operative societies
Section 205: Conditions for tax on income of certain companies and cooperative
societies.
D.––Special provisions relating to minimum alternate tax and alternate minimum tax
Section 206: Special provision for minimum alternate tax and alternate minimum tax.
E.—Special provisions relating to non-residents and foreign company
Section 207: Tax on dividends, royalty and technical service fees in case of foreign companies.
Section 208: Tax on income from units purchased in foreign currency or capital gains arising from their transfer.
Section 209: Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.
Section 210: Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
Section 211: Tax on non-resident sportsmen or sports associations.
Section 212: Interpretation.
Section 213: Special provision for computation of total income of non-residents.
Section 214: Tax on investment income and long-term capital gains.
Section 215: Capital gains on transfer of foreign exchange assets not to be charged in
certain cases.
Section 216: Return of income not to be furnished in certain cases.
Section 217: Benefit to be available in certain cases even after assessee becomes resident.
Section 218: Provisions not to apply if the assessee so chooses.
Section 219: Conversion of an Indian branch of foreign company into subsidiary
Indian company.
Section 220: Foreign company said to be resident in India.
F.—Special provisions relating to pass-through entities
Section 221: Tax on income from securitisation trusts.
Section 222: Tax on income in case of venture capital undertakings.
Section 223: Tax on income of unit holder and business trust.
Section 224: Tax on income of investment fund and its unit holders.
G.––Special provisions relating to income of shipping companies
Section 225: Income from the business of operating qualifying ships
Section 226: Tonnage tax scheme
Section 227: Computation of tonnage income
Section 228: Relevant shipping income and exclusion from book profit
Section 229: Depreciation and gains relating to tonnage tax assets
Section 230: Exclusion of deduction, loss, set off, etc.
Section 231: Method of opting of tonnage tax scheme and validity
Section 232: Certain conditions for applicability of tonnage tax scheme
Section 233: Amalgamation and demerger
Section 234: Avoidance of tax and exclusion from tonnage tax scheme
Section 235: Interpretation

Chapter XIV – Tax Administration

A.—Authorities, jurisdiction and functions
Section 236: Income-tax authorities.
Section 237: Appointment of income-tax authorities.
Section 238: Control of income-tax authorities.
Section 239: Instructions to subordinate authorities.
Section 240: Taxpayer’s Charter.
Section 241: Jurisdiction of income-tax authorities.
Section 242: Jurisdiction of Assessing Officers.
Section 243: Power to transfer cases.
Section 244: Change of incumbent of an office.
Section 245: Faceless jurisdiction of income-tax authorities.
B.—Powers
Section 246: Power regarding discovery, production of evidence, etc.
Section 247: Search and seizure.
Section 248: Powers to requisition.
Section 249: Reasons not to be disclosed.
Section 250: Application of seized or requisitioned assets.
Section 251: Copying, extraction, retention and release of books of account and documents seized or requisitioned.
Section 252: Power to call for information.
Section 253: Powers of survey.
Section 254: Power to collect certain information.
Section 255: Power to inspect registers of companies.
Section 256: Power of competent authority.
Section 257: Proceedings before income-tax authorities to be judicial proceedings.
Section 258: Disclosure of information relating to assessees.
Section 259: Power to call for information by prescribed income-tax authority.
Section 260: Faceless collection of information.
Section 261: Interpretation

Chapter XV – Return of Income

A.––Allotment of Permanent Account Number
Section 262: Permanent Account Number.
B.––Filing of return of income and processing
Section 263: Return of income.
Section 264: Scheme for submission of returns through tax return preparers.
Section 265: Return by whom to be verified.
Section 266: Self-assessment.
Section 267: Tax on updated return

Chapter XVI – Procedure for Assessment

A.—Procedure for assessment
Section 268: Inquiry before assessment
Section 269: Estimation of value of assets by Valuation Officer.
Section 270: Assessment.
Section 271: Best judgment assessment.
Section 272: Power of Joint Commissioner to issue directions in certain cases.
Section 273: Faceless Assessment.
Section 274: Reference to Principal Commissioner or Commissioner in certain cases.
Section 275: Reference to Dispute Resolution Panel.
Section 276: Method of accounting.
Section 277: Method of accounting in certain cases.
Section 278: Taxability of certain income.
Section 279: Income escaping assessment.
Section 280: Issue of notice.
Section 281: Procedure before issuance of notice under section 280.
Section 282: Time limit for notices under sections 280 and 281.
Section 283: Provision for cases where assessment is in pursuance of an order on appeal, etc.
Section 284: Sanction for issue of notice.
Section 285: Other provisions.
Section 286: Time limit for completion of assessment, reassessment and recomputation.
Section 287: Rectification of mistake.
Section 288: Other amendments.
Section 289: Notice of demand.
Section 290: Modification and revision of notice in certain cases.
Section 291: Intimation of loss.
B.––Special procedure for assessment of search cases
Section 292: Assessment of income pertaining to the block period.
Section 293: Computation of total income of block period.
Section 294: Procedure for block assessment.
Section 295: Undisclosed income of any other person.
Section 296: Time-limit for completion of block assessment.
Section 297: Certain interests and penalties not to be levied or imposed
Section 298: Levy of interest and penalty in certain cases.
Section 299: Authority competent to make assessment of block period.
Section 300: Application of other provisions of Act.
Section 301: Interpretation

CHAPTER XVII – SPECIAL PROVISIONS RELATING TO CERTAIN PERSONS

A.––Association of persons, firm, Hindu undivided family, etc.
1.––Legal representatives
Section 302: Legal representative
2.–– Representative assesses—General provisions
Section 303: Representative assessee.
Section 304: Liability of representative assessee.
Section 305: Right of representative assessee to recover tax paid.
3.––Representative assesses—Special cases
Section 306: Who may be regarded as agent.
Section 307: Charge of tax where share of beneficiaries unknown.
Section 308: Charge of tax in case of oral trust.
4.––Association of persons and body of individuals
Section 309: Method of computing a member’s share in income of association of persons or body of individuals.
Section 310: Share of member of an association of persons or body of individuals in income of association or body.
Section 311: Charge of tax where shares of members in association of persons or body of individuals unknown, etc.
5.––Executors
Section 312: Executor.
6.––Succession to business or profession
Section 313: Succession to business or profession otherwise than on death.
Section 314: Effect of order of tribunal or court in respect of business reorganisation.
7.––Partition
Section 315: Assessment after partition of a Hindu undivided family.
8.––Profits of non-residents from occasional shipping business
Section 316: Shipping business of non-residents.
9.––Persons leaving India
Section 317: Assessment of persons leaving India.
10.—Association of persons or body of individuals or artificial juridical person formed for a particular event or purpose
Section 318: Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose.
11.—Persons trying to alienate their assets
Section 319: Assessment of persons likely to transfer property to avoid tax.
12.––Discontinuance of business, or dissolution
Section 320: Discontinued business.
Section 321: Association dissolved or business discontinued.
Section 322: Company in liquidation.
13.—Private companies
Section 323: Liability of directors of private company.
14.––Assessment of firms
Section 324: Charge of tax in case of a firm.
Section 325: Assessment as a Firm.
Section 326: Assessment when section 325 not complied with.
15.––Change in constitution, succession and dissolution
Section 327: Change in constitution of a firm.
Section 328: Succession of one firm by another firm.
Section 329: Joint and several liability of partners for tax payable by firm.
Section 330: Firm dissolved or business discontinued.
16.––Liability of partners of limited liability partnership in liquidation
Section 331: Liability of partners of limited liability partnership in liquidation.
B.––Special Provisions for Registered non-profit organisation
1.––Registration
Section 332: Application for registration.
Section 333: Switching over of regimes.
2.––Income of registered non-profit organisation
Section 334: Tax on income of registered non-profit organisation.
Section 335: Regular income.
Section 336: Taxable regular income.
Section 337: Specified income.
Section 338: Income not to be included in regular income.
Section 339: Corpus donation.
Section 340: Deemed corpus donation.
Section 341: Application of income.
Section 342: Accumulated income
Section 343: Deemed accumulated income
3.––Commercial activities by registered non-profit organisation
Section 344: Business undertaking held as property
Section 345: Restriction on commercial activities by a registered non-profit organisation.
Section 346: Restriction on commercial activities by registered non-profit organisation carrying out advancement of any other object of general public utility.
4.––Compliances
Section 347: Books of account.
Section 348: Audit.
Section 349: Return of income.
Section 350: Permitted modes of investment.
5.––Violations
Section 351: Specified violation.
Section 352: Tax on accreted income.
Section 353: Other violations.
6.––Approval for purpose of deduction under section 133(1)(b)(ii)
Section 354: Application for approval for purpose of section 133(1)(b)(ii).
7.––Interpretation
Section 355: Interpretation.

CHAPTER XVIII – APPEALS, REVISION AND ALTERNATE DISPUTE RESOLUTIONS

A.––Appeals
1.––Appeals to Joint Commissioner (Appeals) and Commissioner (Appeals)
Section 356: Appealable orders before Joint Commissioner (Appeals).
Section 357: Appealable orders before Commissioner (Appeals).
Section 358: Form of appeal and limitation.
Section 359: Procedure in appeal.
Section 360: Powers of Joint Commissioner (Appeals) or Commissioner (Appeals).
2.—Appeals to Appellate Tribunal
Section 361: Appellate Tribunal.
Section 362: Appeals to Appellate Tribunal.
Section 363: Orders of Appellate Tribunal.
Section 364: Procedure of Appellate Tribunal.
3.—Appeals to High Court.
Section 365: Appeal to High Court.
Section 366: Case before High Court to be heard by not less than two Judges.
4.––Appeals to Supreme Court.
Section 367: Appeal to Supreme Court.
Section 368: Hearing before Supreme Court
5.––General
Section 369: Tax to be paid irrespective of appeal, etc.
Section 370: Execution for costs awarded by Supreme Court.
Section 371: Amendment of assessment on appeal.
Section 372: Exclusion of time taken for copy.
Section 373: Filing of appeal by income-tax authority.
Section 374: Interpretation of “High Court”.
B.––Special provisions for avoiding repetitive appeals
Section 375: Procedure when assessee claims identical question of law is pending before High Court or Supreme Court.
Section 376: Procedure where an identical question of law is pending before High Courts or Supreme Court.
C.––Revision by the Principal Commissioner or Commissioner.
Section 377: Revision of orders prejudicial to revenue.
Section 378: Revision of other orders.
D.––Alternate dispute resolutions
1.––Dispute Resolution Committee in certain cases
Section 379: Dispute Resolution Committee.
2.––Advance rulings
Section 380: Interpretation.
Section 381: Board for Advance Rulings.
Section 382: Vacancies, etc., not to invalidate proceedings.
Section 383: Application for advance ruling.
Section 384: Procedure on receipt of application.
Section 385: Appellate authority not to proceed in certain cases.
Section 386: Advance ruling to be void in certain circumstances.
Section 387: Powers of the Board for Advance Rulings.
Section 388: Procedure of Board for Advance Rulings.
Section 389: Appeal.

CHAPTER XIX – COLLECTION AND RECOVERY OF TAX

A.––General
Section 390: Deduction or collection at source and advance payment.
Section 391: Direct payment.
B.––Deduction and collection at source
Section 392: Salary and accumulated balance due to an employee.
Section 393 Tax to be deducted at source.
Section 394: Collection of tax at source
Section 395: Certificates.
Section 396: Tax deducted is income received.
Section 397: Compliance and reporting.
Section 398: Consequences of failure to deduct or pay or, collect or pay.
Section 399: Processing.
Section 400: Power of Central Government to relax provisions of this Chapter.
Section 401: Bar against direct demand on assessee.
Section 402: Interpretation.
C.––Advance payment of tax
Section 403: Liability for payment of advance tax.
Section 404: Conditions of liability to pay advance tax.
Section 405: Computation of advance tax.
Section 406: Payment of advance tax by assessee on his own accord.
Section 407: Payment of advance tax by assessee in pursuance of order of Assessing Officer.
Section 408: Instalments of advance tax and due dates.
Section 409: When assessee is deemed to be in default.
Section 410: Credit for advance tax.
D.––Collection and recovery
Section 411: When tax payable and when assessee deemed in default.
Section 412: Penalty payable when tax in default.
Section 413: Certificate by Tax Recovery Officer and Validity thereof.
Section 414: Tax Recovery Officer by whom recovery is to be effected.
Section 415: Stay of proceedings in pursuance of certificate and amendment or cancellation thereof.
Section 416: Other modes of recovery.
Section 417: Recovery through State Government.
Section 418: Recovery of tax in pursuance of agreements with foreign countries.
Section 419: Recovery of penalties, fine, interest and other sums.
Section 420: Tax clearance certificate.
Section 421: Recovery by suit or under other law not affected.
Section 422: Recovery of tax arrear in respect of non-resident from his assets.
E.––Interest chargeable in certain cases
Section 423: Interest for defaults in furnishing return of income.
Section 424: Interest for defaults in payment of advance tax.
Section 425: Interest for deferment of advance tax.
Section 426: Interest on excess refund.
Section 427: Fee for default in furnishing statements.
Section 428: Fee for default in furnishing return of income.
Section 429: Fee for default relating to statement or certificate.
Section 430: Fee for default relating to intimation of aadhaar number.

CHAPTER XX – REFUNDS

Section 431: Refunds.
Section 432: Person entitled to claim refund in certain special cases.
Section 433: Form of claim for refund and limitation.
Section 434: Refund for denying liability to deduct tax in certain cases.
Section 435: Refund on appeal, etc.
Section 436: Correctness of assessment not to be questioned.
Section 437: Interest on refunds.
Section 438: Set off and withholding of refunds in certain cases.

CHAPTER XXI – PENALTIES

Section 439: Penalty for under-reporting and misreporting of income.
Section 440: Immunity from imposition of penalty, etc.
Section 441: Failure to keep, maintain or retain books of account, documents, etc.
Section 442: Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions.
Section 443: Penalty in respect of certain income.
Section 444: Penalty for false entry, etc., in books of account.
Section 445: Benefits to related persons.
Section 446: Failure to get accounts audited.
Section 447: Penalty for failure to furnish report under section 172.
Section 448: Penalty for failure to deduct tax at source.
Section 449: Penalty for failure to collect tax at source.
Section 450: Penalty for failure to comply with the provisions of section 185.
Section 451: Penalty for failure to comply with provisions of section 186.
Section 452: Penalty for failure to comply with provisions of section 187.
Section 453: Penalty for failure to comply with provisions of section 188.
Section 454: Penalty for failure to furnish statement of financial transaction or reportable account.
Section 455: Penalty for furnishing inaccurate statement of financial transaction or reportable account.
Section 456: Penalty for failure to furnish statement or information or document by an eligible investment fund.
Section 457: Penalty for failure to furnish information or document under section 171.
Section 458: Penalty for failure to furnish information or document under section 506.
Section 459: Penalty for failure to furnish report or for furnishing inaccurate report under section 511.
Section 460: Penalty for failure to submit statement under section 505.
Section 461: Penalty for failure to furnish statements, etc.
Section 462: Penalty for failure to furnish information or furnishing inaccurate information under section 397(3)(d).
Section 463: Penalty for furnishing incorrect information in reports or certificates.
Section 464: Penalty for failure to furnish statements, etc.
Section 465: Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc.
Section 466: Penalty for failure to comply with the provisions of section 254.
Section 467: Penalty for failure to comply with the provisions of section 262.
Section 468: Penalty for failure to comply with the provisions of section 397(1).
Section 469: Power to reduce or waive penalty, etc., in certain cases.
Section 470: Penalty not to be imposed in certain cases.
Section 471: Procedure.
Section 472: Bar of limitation for imposing penalties.

CHAPTER XXII – OFFENCES AND PROSECUTION

Section 473: Contravention of order made under section 247
Section 474: Failure to comply with section 247(1)(b)(ii)
Section 475: Removal, concealment, transfer or delivery of property to prevent tax recovery
Section 476: Failure to pay tax to credit of Central Government under Chapter XIX-B
Section 477: Failure to pay tax collected at source
Section 478: Wilful attempt to evade tax, etc.
Section 479: Failure to furnish returns of income
Section 480: Failure to furnish return of income in search cases
Section 481: Failure to produce accounts and documents
Section 482: False statement in verification, etc.
Section 483: Falsification of books of account or document, etc.
Section 484: Abetment of false return, etc.
Section 485: Punishment for second and subsequent offences.
Section 486: Punishment not to be imposed in certain cases.
Section 487: Offences by companies.
Section 488: Offences by Hindu undivided family.
Section 489: Presumption as to assets, books of account, etc., in certain cases.
Section 490: Presumption as to culpable mental state.
Section 491: Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner
Section 492: Certain offences to be non-cognizable.
Section 493: Proof of entries in records or documents
Section 494: Disclosure of particulars by public servants
Section 495: Special Courts
Section 496: Offences triable by Special Court
Section 497: Trial of offences as summons case
Section 498: Application of Bharatiya Nagarik Suraksha Sanhita, 2023 to proceedings before Special Court

CHAPTER XXIII – MISCELLANEOUS

Section 499: Certain transfers to be void
Section 500: Provisional attachment to protect revenue in certain cases
Section 501: Service of notice, generally
Section 502: Authentication of notices and other document
Section 503: Service of notice when family is disrupted or firm etc., is dissolved
Section 504: Service of notice in case of discontinued business
Section 505: Submission of statement by a non-resident having liaison office
Section 506: Furnishing of information or documents by an Indian concern in certain cases
Section 507: Submission of statements by producers of cinematograph films or persons engaged in
specified activity
Section 508: Obligation to furnish statement of financial transaction or reportable account
Section 509: Obligation to furnish information on transaction of crypto-asset
Section 510: Annual information statement
Section 511: Furnishing of report in respect of international group
Section 512: Publication of information respecting assessees in certain cases
Section 513: Appearance by registered valuer in certain matters
Section 514: Registration of valuers
Section 515: Appearance by authorised representative
Section 516: Rounding off of amount of total income, or tax payable or refundable
Section 517: Receipt to be given
Section 518: Indemnity
Section 519: Power to tender immunity from prosecution
Section 520: Cognizance of offences
Section 521: Probation of Offenders Act, 1958 and section 401 of Bharatiya Nagarik Suraksha Sanhita, 2023, not to apply
Section 522: Return of income, etc., not to be invalid on certain grounds
Section 523: Notice deemed to be valid in certain circumstances
Section 524: Presumption as to assets, books of account, etc.
Section 525: Authorisation and assessment in case of search or requisition
Section 526: Bar of suits in civil courts
Section 527: Power to make exemption, etc., in relation to participation in business of prospecting or, extraction, etc., of mineral oils
Section 528: Power of Central Government or Board to condone delays in obtaining approval
Section 529: Power to withdraw approval
Section 530: Act to have effect pending legislative provision for charge of tax
Section 531: Power to rescind exemption in relation to certain Union territories already granted under section 294A of the Income-tax Act,1961
Section 532: Power to frame schemes
Section 533: Power to make rules
Section 534: Laying before Parliament
Section 535: Removal of difficulties
Section 536: Repeal and savings

Table listing the schedules included in the Income Tax Bill, 2025, along with their purpose:

Schedule No.	Section	Purpose
Schedule I	Section 9(12)	CONDITIONS FOR CERTAIN ACTIVITIES NOT TO CONSTITUTE BUSINESS CONNECTION IN INDIA
Schedule II	Section 11	INCOME NOT TO BE INCLUDED IN TOTAL INCOME
Schedule III	Section 11	INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE PERSONS
Schedule IV	Section 11	INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE NON-RESIDENTS, FOREIGN COMPANIES AND OTHER SUCH PERSONS
Schedule V	Section 11	INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF CERTAIN ELIGIBLE PERSONS INCLUDING INVESTMENT FUNDS, BUSINESS TRUSTS AND THEIR UNIT HOLDERS
Schedule VI	Section 11	INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF CERTAIN ELIGIBLE PERSONS IN INTERNATIONAL FINANCIAL SERVICES CENTRE OR HAVING INCOME THEREFROM
Schedule VII	Section 11	PERSONS EXEMPT FROM TAX
Schedule VIII	Section 12	INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS
Schedule IX	Section 48	DEDUCTION FOR TEA DEVELOPMENT ACCOUNT, COFFEE DEVELOPMENT ACCOUNT AND RUBBER DEVELOPMENT ACCOUNT FOR COMPUTING INCOME UNDER THE HEAD “PROFITS AND GAINS OF BUSINESS OR PROFESSION”
Schedule X	Section 49	DEDUCTION FOR SITE RESTORATION FUND FOR COMPUTING INCOME UNDER THE HEAD “PROFITS AND GAINS OF BUSINESS OR PROFESSION
Schedule XI	Section 2(91) Sections 2(9) and (10)	PART A – RECOGNISED PROVIDENT FUNDS PART B – APPROVED SUPERANNUATION FUNDS AND GRATUITY FUNDS PART C – POWER TO MAKE RULES FOR PROVIDENT FUNDS, SUPERANNUATION FUNDS AND GRATUITY FUNDS
Schedule XII	Section 51	PART A – MINERALS PART B – GROUPS OF ASSOCIATED MINERALS
Schedule XIII	Sections 45(2)(c) and (d)	LIST OF ARTICLES OR THINGS
Schedule XIV	Section 55	INSURANCE BUSINESS: A – Life insurance business B – Other insurance business C – Other provisions
Schedule XV	Section 123	DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA, CONTRIBUTION TO PROVIDENT FUND, SUBSCRIPTION TO CERTAIN EQUITY SHARES, ETC.
Schedule XVI	Section 350	PERMITTED MODES OF INVESTMENT OR DEPOSITS FORMS OR MODES OF INVESTMENT OR DEPOSITS BY A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION

For complete details, refer to the official Income Tax Bill, 2025 document: https://incometaxindia.gov.in/Documents/income-tax-bill-2025/income-tax-bill-2025.pdf

We hope this detailed breakdown of the Income Tax Bill 2025 and its section-wise analysis has provided valuable insights. Your thoughts and opinions matter! Do share your views in the comments section below. If you found this article helpful, don’t forget to like and share it with your peers to spread awareness about these crucial tax updates.

Thank you for taking the time to read and stay informed. Your engagement and feedback motivate us to bring more insightful content on tax laws and financial regulations. Stay connected for more updates!

For FAQ’s Explanation : Click here