The bill proposes several changes to the Income Tax Act and the Finance Act, 2025. It introduces tax exemptions for subscribers of the Unified Pension Scheme, up to 60% of an individual’s corpus from the National Pension System Trust will be tax-exempt upon superannuation or voluntary retirement. Additionally, other lump-sum payments received under the scheme will also be exempt. Another amendment relates to international tax agreements, specifically including the Public Investment Fund of the Government of Saudi Arabia and its wholly-owned subsidiaries in the list of “specified persons” eligible for certain income exemptions. It also revises the rules for “block assessment” of search cases to ensure correct application and clarifies the abatement of pending assessments.
(Link: The Taxation Law Amendment Bill 105/2025 Dated 8/2025)