Income tax

CBDT’s Big Move: What the Corrigendum to the Income-tax Act Means for Taxpayers

The Central Board of Direct Taxes (CBDT) has issued a significant corrigendum to the recently enacted Income-tax Act, 2025. This blog post delves into the necessity and impact of these corrections, highlighting various typographical, grammatical, and structural fixes. It explains why such legislative "housekeeping" is crucial for legal accuracy and preventing disputes, while also providing context on the broader reforms introduced by the Income-tax Act, 2025, including a simplified structure, unified tax year, and digital-first assessments. The key takeaway emphasizes that while the corrigendum doesn't alter tax policy substance, it ensures the Act is legally sound and ready for smooth implementation, supporting India's goal of a simpler, more transparent tax framework.

1. What Just Happened?

On 3 September 2025, the Central Board of Direct Taxes (CBDT), through the Ministry of Law and Justice, issued a corrigendum to the newly enacted Income-tax Act, 2025 (Act No. 30 of 2025). This Act was originally published in the Gazette on 21 August 2025. The corrigendum corrects numerous typographical, grammatical, and structural errors in the initial text to improve clarity and legal precision.

2. Highlights of the Corrections

Here are the key types of errors addressed by the corrigendum:

Correction Type	Examples of Edits Made
Spelling & Terminology	“assesse” → “assessee”; “Assesssing” → “Assessing”; “anaonymous” → “anonymous”
Word Substitutions	“previous” replaced with “tax” in certain clauses
Grammatical Fixes	“gains is” → “gains are”; removal of duplicate “tax tax”; “enure” → “ensure”
Section References	“205(1)(a)” updated to “section 205(1)(a)”; “145 (1).” corrected to “145.”
Structural Clarity	“sub-section” changed to “sub-sections”; marginal heading updated from “in cases” to “cases of section 298”
Other Minor Edits	Various small adjustments across the text for consistency

Additionally, the corrigendum includes a change in the Bills of Lading Act, 2025. It corrects the phrase “or taken” to “done or taken.”

3. Why This Matters

Such corrigenda may seem ordinary, but they play an important legislative role:

Legal Accuracy & Interpretation: Mistakes in wording or references can lead to misinterpretation. Correcting them ensures laws are enforced as intended.
Preventing Disputes: Clarifying grammar and terminology helps avoid unnecessary litigation based on ambiguities.
Standard Legislative Practice: Issuing corrigenda is a routine—but essential—step after major legislative changes.

4. Context: The Income-tax Act, 2025

This corrigendum follows the enactment of a significant reform:

The Act was passed by Parliament in August 2025, received presidential assent on 21 August, and is set to come into force on 1 April 2026.
Key features of the Income-tax Act, 2025 include:
- Simplified structure: Reduced from over 800 to 536 sections across 23 chapters and 16 schedules.
- Introduction of a unified Tax Year, replacing the earlier “Previous Year/Assessment Year” duality.
- Faceless, digital-first assessments, better notice procedures, TDS refund flexibility, and restrictions on anonymous donations.
- Continued basic exemption threshold of ₹12 lakh, while updating definitions—adding virtual digital assets under the scope of undisclosed income, among other changes.

5. Key Takeaway

While this corrigendum doesn’t change the substance of tax policy, it is a crucial housekeeping step. It ensures the newly enacted Income-tax Act is legally sound, coherent, and ready for implementation. It supports the broader reform effort aimed at overhauling India’s tax framework—making it simpler, more transparent, and easier to navigate.

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Krishna Gopal Varshney

An editor at apnokaca

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Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.

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