Investors and entrepreneurs have welcomed the updated Income Tax Bill, 2025, tabled in Parliament by Finance Minister Nirmala Sitharaman, which incorporates several investor-friendly changes recommended by the Parliamentary Select Committee.
For commercial property owners, the Bill now clarifies that temporarily unused business premises will not be taxed on a notional rent basis — a move expected to reduce unnecessary tax burdens during business downtime.
Key investor and business-related changes include:
Commercial property taxation fix: Aligns tax treatment to actual business use rather than theoretical rental values.
Refund flexibility: Removal of the clause that denied refunds if returns were filed late, allowing genuine cases (illness, system issues) to be considered.
Pre-construction interest deduction: Available for income-earning properties, supporting real estate investment decisions.
While the Bill does not drastically alter corporate tax provisions, analysts say the increased clarity and reduced scope for disputes will improve investor confidence, especially in the real estate and commercial property segments.
Read More: New Income Tax Bill 2025 Simplifies Slabs, Enhances Rebate for Middle-Class Earners
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
