Union Finance Minister Nirmala Sitharaman announced during the presentation of the Union Budget 2025 that a new Income Tax Bill will be introduced in Parliament next week.
This announcement has sparked significant interest and speculation among taxpayers and financial analysts alike.
The proposed new Income Tax Bill follows a comprehensive review of the Income-tax Act, 1961. Finance Minister announced this review in July 2024.
The review aimed to make the Act concise, lucid, and easy to read and understand, thereby reducing disputes and litigation.
The new bill is expected to replace the existing Income Tax Act of 1961. It will streamline tax compliance for individuals and businesses.
Finance Minister highlighted the government’s development track record over the past 10 years. She also mentioned the structural reforms that have drawn global attention.
She emphasized that the budget’s focus is on inclusive growth and taking everyone together on this path.
Key Features of the New Income Tax Bill
- Simplification of Language: The new bill aims to simplify the language of the Income-tax Act to make it more accessible and understandable for taxpayers.
- Reduction in Litigation: By making the Act more concise and clear, the new bill aims to reduce the number of disputes and litigation related to income tax.
- Compliance Reduction: The bill aims to reduce compliance burdens on taxpayers by consolidating various provisions into a more coherent system.
- Obsolete Provisions: The new bill will remove obsolete provisions from the existing Act to ensure that it remains relevant and up-to-date.
The introduction of the new Bill will have a significant impact on taxpayers.
The simplification of the language is likely to make it easier for individuals and businesses to file their tax returns.
The reduction in compliance burdens will help them understand their tax obligations better.
Additionally, reducing litigation will provide greater tax certainty to taxpayers.
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