The new Income Tax Bill may be introduced in Parliament tomorrow, Tuesday, 11 February. The Union Cabinet has approved this bill on Friday. The purpose of introducing the new Income Tax Bill is to improve the existing tax structure system and make it simpler.
New Income Tax Bill: While presenting the Budget 2025, Finance Minister Nirmala Sitharaman had talked about bringing a new Income Tax Bill. This bill can be introduced in Parliament tomorrow, Tuesday, 11 February. On Friday, the Union Cabinet has approved this bill. The Income Tax Act 1961 which is currently in force is in force since 1961. Now it will be completely abolished and a new law will be brought, which will be updated according to the current times. Let us tell you that the purpose of bringing the new Income Tax Bill is to improve the existing tax structure system and make it easier.
New ‘Tax Year’ may be implemented
The government is considering merging the Assessment Year and Financial Year. This will make the rules of tax filing simpler and streamlined.
Paying tax will become easier
The new law will be written in fewer words, in easy language so that common people can understand it. The current law is written in 6 lakh words, which will be halved. That means less complexity, less confusion.
No change in tax rates
Tax slabs will not be changed in this bill, that is, the current tax rates will remain the same. The tax system will just be made simpler and more rational.
Promotion of digital tax system
The process of filing tax will be completely digitalized. This will reduce paper work and people will be able to file their taxes easily.
Less legal hassles for taxpayers
The government’s focus will be on reducing tax litigation. There may also be a provision to reduce punishment for many crimes.
Transparency in the new tax law
The government will make tax rules more clear and transparent so that there is no problem. This will cause less trouble to taxpayers and there will be no need to adopt wrong ways to save tax.
Foreign investment will get a boost
The new law will also be clear for foreign companies and investors, which can increase investment in India. This will benefit the Indian economy.
Some new changes in the scope of tax
The government wants more and more people to join the tax system. But there will be no provision for any new tax in it. It can first be sent to the Standing Committee so that its provisions can be discussed.
