Troubling bugs stay in new tax bill

When the government first introduced the New Income Tax Bill earlier this year, it was touted as a once-in-a-generation overhaul of India's tax system.

- SHREY MADAAN

Now, with the revised version tabled in Parliament, the fanfare is back. But scratch beneath the surface, and you will find that for ordinary taxpayers, not much has changed, and the most troubling provisions remain firmly in place.

One glaring example is Clause 247, which still empowers tax authorities to override legitimate transactions if they believe them to have been carried out with the "main purpose" of obtaining a tax benefit. This vague, catch-all clause is a bureaucrat's dream and a taxpayer's nightmare. It essentially allows the state to second-guess your financial decisions, from investments to property deals, based on subjective intent rather than clear evidence.