Ministry : Lok Sabha Secretariat (Not Applicable)

Part II-Section 2

Subject : Extra Ordinary

Overview [Part I Finance Bill, 2025]

The Finance Bill, 2025 presents the Central Government’s financial proposals for FY 2025-26, outlining key tax structures and empowering delegated legislation through rule-making authority.

Key Points

• Grants the Central Government power to issue notifications and enables the Board to make rules across multiple tax domains.
• Amends the Income-tax Act to define and expand 'group entity', 'principal entity', and 'parent entity', along with empowering the Board to set conditions and rules for these definitions.
• Modifies provisions related to 'salary', 'perquisite', and 'profits in lieu of salary', allowing the Board to determine respective amounts.
• Introduces special provisions for non-residents engaged in electronic manufacturing or related services in India under section 44BBD.
• Updates transfer pricing regulations under section 92CA, including arm’s length price applicability and Board rule-making powers.
• Empowers the Government to regulate voluntary post-clearance revision of customs entry under section 18A of the Customs Act.
• Clarifies details under the CGST Act regarding track and trace mechanisms and unique identification marking of goods.

Summary [Finance Bill, 2025]

The Finance Bill, 2025 serves as the fiscal blueprint for India’s 2025-26 financial year, embedding critical tax policy frameworks alongside broad delegated legislative powers. By introducing new sections and amending existing provisions across the Income-tax Act, Customs Act, and CGST Act, the Bill enhances regulatory flexibility while providing the Government authority to set detailed rules on entity definitions, transfer pricing, non-resident taxation, and customs documentation. Its provisions are poised to shape compliance structures for businesses and influence revenue mobilization strategies for the coming fiscal.