New Income Tax Act 2025: Stricter Rules for HRA, PAN, and Digital Data

• Central government proposes major changes to income tax rules with the new 'Income Tax Act, 2025', effective April 1.
• New draft forms for tax returns, audits, and claims released; opinions sought from stakeholders.
• Stricter scrutiny for HRA claims: detailed tenant-landlord relationship information required, especially for relatives.
• Increased responsibility for CAs and auditors, mandatory independent verification for Foreign Tax Credit (FTC) claims.
• New rules for PAN card applications and tax audits to prevent fraud and enhance transparency, including digital information disclosure.