Kolkata: The much-awaited new Income Tax Bill could be tabled in Parliament in the week beginning February 10, reports indicate. Officials of the Finance Ministry have told the media that the Union cabinet, chaired by Prime Minister Narendra Modi, has approved the New Income Tax Bill on February 7. This legislation was first proposed by the FM in her Budget 2024 presented on July 23 last year.
The new Income Tax Bill has been in the works for quite some time. It is expected to replace the Income Tax Act 1961. According to finance minister Nirmala Sitharaman, the Bill will be far more concise than the existing legislation and also will be worded in a more comprehensible way so that it becomes more comprehensible to the common people. Reports have indicated that it could be devoid of the legalese and long winding sentences that usually repel the common man.
Revenue neutral
The new Bill is supposed to be revenue neutral, officials said after the Union budget presented on February 1. In other words, it means that the new Bill will uphold the latest changes proposed by the FM in the income tax structure in her Budget 2025. Incidentally, one of the key objectives of the direct tax proposals of the government was to leave more disposable income in the hands of the taxpayer so that he/she can spend more that would breathe life into the GDP growth rate in the country. One will not have to pay any income tax till the level of Rs 12.75 lakh (Rs 12 lakh + Rs 75,000 standard deduction) a year from FY26. “It will be simple to understand for taxpayers and reduce litigation,” said Nirmala Sitharaman during the press conference.
To be sent to Standing Committee
Finance minister Nirmala Sitharaman has refused to commit when this piece of proposed legislation will come into effect. At a press conference following Budget 2025 on February 1, she said that the Bill will be sent to the Standing Committee on Finance after it is tabled in the Parliament. The standing committee is expected to invite views of stakeholders on the Bill and the next step would be decided after the suggestions by stakeholders are obtained.
The current budget session in Parliament will have two legs and the first leg is supposed to end on February 13. It will be reconvened on March 10 and will continue till April 4. According to reports, last year the Central Board of Direct Taxes set up an internal committee to review and draft the Bill in a way that does not scare away the common taxpayer and make it clear and easily comprehensible — something that Income Tax laws in India has never been. Several years ago, former FM P Chidambaram remarked in Parliament that he could not really understand what the Saral form wanted to convey.
Reports further stated that the committee sought the opinion of people on simplification of language, suggestions to weed out parts of the current Act that are redundant, ways to reduce litigation and decreasing the burden of compliance on the taxpayer. As many as 6,500 suggestions were received, said reports.
The proposed new Income Tax Bill 2025 could be tabled in Parliament on Monday, February 10 and it could be far simpler and free from ‘scary’ jargons that have marked the world of Income Tax rules and legislation in independent India. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
