President grants assent to income tax, gaming Bills

President Droupadi Murmu has granted assent to the Income Tax Bill, 2025, and the Promotion and Regulation of Online Gaming Bill, 2025, passed during the recently concluded monsoon session of Parliament.

The Income Tax Act, 2025, will come into force on April 1 next year, the notification reads. The new Act, spanning 536 sections, 23 chapters, and 16 schedules, aims to streamline India’s tax system by simplifying language, reducing redundant provisions, and aligning with the digital economy.

The Act introduces no new tax rates but focuses on clarity and ease of compliance. Notable changes include the introduction of a unified “tax year” concept and broader definitions for virtual digital assets, such as cryptocurrencies, now explicitly taxable. The Act also enhances the Central Board of Direct Taxes’ authority to implement faceless assessments and technology-driven schemes for efficiency.

Key provisions include relaxed rules for claiming tax deducted at source (TDS) refunds, even for delayed filings, and reintroduced deductions for inter-corporate dividends and pensions. It also addresses capital gains taxation, setting a

12.5 per cent rate without indexation for immovable property and unlisted securities sold on or after July 23, 2024, compared to the previous 20% rate with indexation.

The new gaming law bans all online money gaming platforms with penalties of up to three years in jail and fines of up to Rs 1 crore for facilitators, and up to two-year imprisonment and Rs 50 lakh fine for promoters.

It aims to promote e-sports and social gaming while addressing issues such as addiction, fraud and money laundering. Some provisions may take effect immediately, with others awaiting detailed rules, as stated by Ministry of Electronics and Information Technology Secretary S Krishnan.