The Taxation Laws (Amendment) Act, 2025

The Taxation Laws (Amendment) Act, 2025 introduces tax changes linked to online gaming, pension contributions, and search and seizure mechanisms.

Key Provision	Details
Unified Pension Scheme (UPS)	Aligns the new UPS with the National Pension System by granting tax exemptions on 60% of the final corpus.
Saudi PIT Relief	Specific tax exemptions for investments made by Saudi Arabia’s Public Investment Fund and its subsidiaries.
Search and Seizure Fix	Streamlines “block assessment” procedures by abandoning overlapping assessments initiated after tax search actions.
Standard Deduction Hike	Increases the standard deduction by 33% from Rs. 75,000 to Rs. 1 lakh.
Promotion of E-sports	Recognises e-sports and competitive gaming as legitimate fields, making them eligible for incentives, and establishes training academies.
Online Gaming Authority	Establishes a national-level regulator responsible for game classification, registration, and grievance redressal.
Stringent Penalties	Offering or facilitating prohibited online money games attracts up to 3 years jail and Rs. 1 crore fine. Advertisement and celebrity endorsements face up to 5 years jail and Rs. 2 crore fine.
Enforcement Powers	Authorities are empowered to conduct searches and seizures without warrant under the Bharatiya Nagarik Suraksha Sanhita, 2023, to curb illegal platforms.

PT Facts

Act: Taxation Laws (Amendment) Act, 2025.
Standard Deduction: Increased from Rs. 75,000 to Rs. 1 lakh.
UPS Tax Benefit: 60% of final corpus exempted.
Online Gaming Authority: National regulator for classification, registration and grievances.
Penalty: Up to 3 years jail and Rs. 1 crore fine for prohibited online money games.
Advertisement Penalty: Up to 5 years jail and Rs. 2 crore fine.

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