Amendments in Finance Act 2025

The Finance Minister Nirmala Sitharaman tabled the Finance Bill 2025 in Lok Sabha today for approval. The bill attempts to carry out the government’s plans for the financial year 2025-26.

The Finance Bill is a significant part of the Union Budget. It contains proposals of taxes and other financial measures suggested by the government. Its passage is required for these laws to become effective.

The bill is passed now and formed the New Finance Act 2025. The new Finance Bill/Finance Act 2025 has proposed a few amendments in line with government efforts to ease compliance for taxpayers and business professionals.

Amendments in Finance Act 2025

1. FM proposes to remove the 6% equalisation levy on online advertising in the Finance Bill 2025, reducing the tax burden on digital ad consumers and lowering costs on platforms like Google and Meta. Section 163 of the Finance Act 2016 levying Equalisation levy not to apply w.e.f. 01.04.2025.

2. ⁠Correspondingly, Income Tax exemption in respect of transaction liable for Equilisation levy has been deleted u/s 10(50).

3. ⁠Another change is that in newly introduced Section 44BBD for electronics manufacturing (25% presumptive income), a proviso has been inserted that Section 44DA and Section 115A shall not be applicable. Hence no controversy will exist that currently exists on Section 44BB cases where the Revenue still contests that the provision of Section 44DA will override Section 44BB.

4. ⁠One more clause has been proposed to be added to the list of permissible adjustments by CPC under Section 143(1)- any inconsistency on the basis of previous year ITR can also be a subject matter of adjustment by CPC while processing ITR.