Income Tax Bill 2025 Passed: Defence Update for NDA Exam Preparation (14 August 2025)

News Highlights

On 14 August 2025, the Indian Parliament passed the Income Tax Bill, 2025, replacing the over 60-year-old Income Tax Act, 1961. This transformational reform aims to simplify India’s taxation system, making it more transparent, modern, and citizen-friendly without introducing any change in tax rates.

The Bill drastically reduces sections from 819 to 536 and chapters from 47 to 23, eliminating redundant provisions and complex legal jargon. One of its most notable reforms is the replacement of the “Assessment Year” and “Previous Year” with a unified “Tax Year”, effective from 1 April 2026 (FY 2026–27).

Key provisions include:

• Faceless, digital-first tax assessment to enhance transparency and reduce harassment.
• Refund claims allowed even after filing deadlines, aiding taxpayer convenience.
• TDS correction period reduced from 6 years to 2 years, ensuring faster dispute resolution.
• Stronger protections for pension and gratuity payments for retirees.
• Adoption of recommendations from a 31-member Parliamentary Select Committee chaired by Baijayant Panda.

This reform reflects India’s goal to streamline tax compliance, reduce litigation, and align laws with the digital era — paving the way for greater voluntary participation in the tax system and stronger fiscal stability.

NDA Exam Relevance

For NDA aspirants, awareness of such landmark reforms is crucial for General Knowledge, Current Affairs, and Economic Policy sections of the exam. Tax reforms influence India’s fiscal policy, revenue flow, and defence budgeting, which directly affect national security planning.

In SSB Interviews, being able to discuss how fiscal reforms strengthen the economy — and in turn, defence infrastructure — showcases leadership potential, analytical thinking, and awareness of national priorities, all qualities expected from future defence officers.

Practice Questions

Q1. Which key timeline change does the Income Tax Bill 2025 introduce?
a) Introduction of Assessment & Previous Year
b) Single Tax Year replacing Assessment & Previous Year
c) Extension of filing deadlines
d) Removal of tax filing requirement
Answer: b

Q2. Which is NOT a feature of the Income Tax Bill 2025?
a) Reduction in sections and chapters
b) Introduction of new tax rates
c) Digital-first faceless assessment
d) Refunds allowed after deadlines
Answer: b

A Note for NDA Aspirants

For NDA success, staying updated with current affairs is as important as physical training. National policies like the Income Tax Bill 2025 reflect governance strategies that directly shape India’s progress and security.

If you aim to crack the NDA exam, combining strategy with expert guidance is key. Ground Zero Defence Academy in Dehradun, known as the best NDA coaching centre, offers structured study plans, interview preparation, and real-time updates to make your NDA preparation unbeatable.

Stay disciplined, stay informed, and keep pushing — the nation needs officers like you. 🇮🇳

Keywords: NDA preparation, NDA exam, NDA coaching in Dehradun, best NDA coaching, how to crack NDA exam, NDA current affairs, NDA GK preparation.