Income Tax Updates: The new Income Tax Bill is expected to be tabled in the Lok Sabha on February 13, marking a significant step towards modernizing and simplifying India’s tax system, according to an ANI report.
Approved by the Union Cabinet on February 7, the bill aims to replace the with a more concise and easily understood law.
The government intends to have detailed consultations on the bill and is likely to send it to a Select Committee for further examination.
Sitharaman had indicated earlier that the bill will be sent to a parliamentary committee for scrutiny. “The process is the committee gives its recommendations, it comes back, and then the government, through the Cabinet, takes a call whether these amendments are to be taken in,” she had said.
In July 2024 Budget, the government had proposed a comprehensive review of the Income-tax Act, 1961. The purpose was to make the Act concise and lucid and reduce disputes and litigation.
Sitharaman had said in her budget speech on February 1 that the bill will be soon introduced in Parliament.
“Over the past 10 years, our , such as (1) faceless assessment, (2) taxpayers charter, (3) faster returns, (4) almost 99 per cent returns being on selfassessment, and (5) Vivad se Vishwas scheme. Continuing these efforts,I reaffirm the commitment of the tax department to “trust first, scrutinize later. I also propose to introduce the new income-tax bill next week,” she said in the budget speech.
Budget 2025: What it mentions about New Income Tax System?
During her Budget speech, Union Finance Minister Nirmala Sitharaman raised the starting point for and also announced that the government will introduce a new income tax bill.
The FM further announced a new fund for startups and said the government will provide more money to promote innovation in partnership with the private sector and launch programs to push manufacturing and exports.
She also announced excise duty cuts on crucial medicines and a range of new initiatives to foster the growth of the real estate and health sectors.
Nirmala Sitharaman had tabled the Economic Survey 2024-25 on January 31, projecting India’s GDP to grow at a rate of 6.4 per cent for FY2025.
