New I-T Bill Allows TDS Refunds Even If Return Is Filed Late

The new Income Tax Bill passed by the Lok Sabha on Monday will allow individuals to claim Tax Deducted at Source (TDS) refunds even if they fail to file income tax return (ITR) within the due date.

- PTI [e-mail] NEW DELHI

The Income Tax (No. 2) Bill, which from April 1, 2026, will replace the Income Tax Act, 1961, was introduced by finance minister Nirmala Sitharaman and passed in the Lok Sabha amid din. The bill cuts down wordage and chapters by almost half and writes clauses in simpler and easy-to-understand language.

It does away with the confusing concepts of assessment year and previous year, replacing them with the easier-to-understand 'tax year'.