New Income Tax Bill : The new income tax bill is likely to be approved in the cabinet meeting to be held on Friday, February 7, 2025, after which the bill is likely to be introduced in the Lok Sabha next week. Finance Minister Nirmala Sitharaman had announced the introduction of a new income tax bill in Parliament while presenting the budget for February 1, 2025.
While presenting the budget, Finance Minister Sitharaman had said that with regard to criminal law, our government has introduced the Indian Judicial Code instead of the Indian Penal Code. Now I am happy to tell this House and the country that the new Income Tax Bill will carry forward this spirit of justice. The new bill will be clear and direct with about half of the current tax law in both chapters and words in the case of text. This will be easier for the tax administration with taxpayers to understand, which will increase tax certainty and less litigation.
The Finance Minister said, In the last 10 years, our government has implemented Faceless Valuation, Taxpayer Charter, Speed of Income Tax Return, 99 Percent Return through Self-Assessment and Dispute Se Vishwas scheme for the convenience of taxpayers. Continuing the same effort, the tax department reiterates the tax department’s commitment to “trust first, investigate later.” I propose to introduce a new income tax bill next week.
The new income tax bill will be introduced in Parliament after getting approval from the Cabinet. The Bill will replace the existing Income Tax Act, 1961. The new income tax law aims to simplify and simplify the tax process. The income tax law is going to be made for the by first time since 1961. The CBDT committee is also working on the new law. However, income tax has been amended several times in the last six decades. Questions are arising in the minds of taxpayers that what can happen in the income tax bill?
What can be in the new tax bill?
The new income tax bill can be made much simpler and easier for taxpayers to understand. It may be very easy for taxpayers to file income tax returns in the coming days. The central government is preparing to make the rules for filing income tax returns very easy and simple. The government is very troubled by increasing tax disputes, and tax cases equalising the value of about $120 billion are in dispute. This is set to be reduced through a new tax law. The new income tax bill will change the practice of saying financial year and assessment year under tax laws and define it as tax year only. Further, the number of additional forms for filing tax returns will be minimised. The Finance Minister has asked the taxpayers to make the language of the notices sent by the department so that the taxpayers can easily understand and they do not have to appoint a lawyer to respond to the tax department.