Income tax law: Finance Minister Nirmala Sitharaman has presented a solution to the biggest problem of the salary category in the budget. The Finance Minister in his budget speech said that a new income tax law will be made in the country. The government will bring a new bill next week.
The income tax law of 1961 is still in force in the country. In Budget 2020, the government had implemented a new tax regime under this law. But in the budget presented in July 2024, the government had made it clear that the income tax law in the country needed to be changed. A review committee has been constituted for this.
Now, based on the same, the government has announced to bring a new bill, which will replace the 1961 law in the country.
What will happen in the new bill?
There is no specific announcement in the budget about what will happen in the new income tax law. But one of the 6 cores recognised in the budget by the government is a regulatory reform. The economic survey released yesterday also mentions easing regulation in the country. Of course, the government will simplify the tax in the new law. Finance Minister Nirmala Sitharaman said the new income tax law will bring justice. It will be simpler than the current bill. This will reduce litigation.
“Nirmala Sitharaman said, “”Taxation reforms have been given a place under the main reform to realise our vision of a developed India.” Just like the government changed the old criminal law into a ‘justice’ code for a ‘penalty’ law. The new Income Tax Bill will also further the spirit of ‘justice’. This new bill will be less than half of the existing law in both chapter and word and will be clear and easy to read. This will be easier for taxpayers and tax officials to understand, leading to tax assurances and less litigation.”
