India: Proposed tax benefits approved by Lower House of Parliament
Amendments to the Income-tax Act, 1961, and the Finance Act, 2025
The Lower House of Parliament (Lok Sabha) on August 11, 2025, passed the Taxation Laws (Amendment) Bill, 2025. The bill includes amendments to the Income-tax Act, 1961, and the Finance Act, 2025, specifically proposing:
- Tax exemptions to subscribers of the Unified Pension Scheme, thereby aligning its benefits with those available under the National Pension System
- An enhanced standard deduction (INR 75,000) under the new regime for tax rates prescribed for financial year 2025 – 2026.
- Extended tax benefits for public investment funds of Saudi Arabia
The bill will need to be approved by the Upper House of Parliament (Rajya Sabha) and receive assent from the president before becoming law.
Read an August 2025 report prepared by the KPMG member firm in India
Read an August 2025 report prepared by the KPMG member firm in India that highlights the recommendations made by the Parliamentary Select Committee