Union Cabinet, chaired by Prime Minister Narendra Modi, is expected to approve a new Income Tax Bill on Friday, February 7, 2025.
This bill, often referred to as the Direct Tax Code, aims to overhaul the existing tax structure to make it more streamlined and transparent.
Finance Minister Nirmala Sitharaman announced the new Income Tax Bill during her Budget 2025 speech.
She emphasized the government’s commitment to simplifying tax laws and reducing litigation.
The bill is part of a broader push to reform the taxation system and make it more taxpayer-friendly.
Key Features of New Income Tax Bill and Expected Impact
The new legislation focuses on simplifying tax laws, removing ambiguities, and ensuring ease of compliance for taxpayers.
It aims to reduce tax-related disputes and litigation by making the legal language more straightforward and understandable.
The bill will not introduce any new taxes but will bring structural reforms to the existing tax framework.
Once approved, the bill is expected to be tabled in the Lok Sabha as early as Monday, February 10, 2025.
The government hopes that the new tax code will provide clarity and certainty to taxpayers. This will make it easier for them to comply with tax regulations.
The bill is also expected to reduce penalties for certain offenses, making the tax system less punitive and more taxpayer-friendly.
Government’s Outreach to the Middle Class
The Union government has pitched the new Income Tax Bill as part of an outreach to the middle class.
This initiative includes tax breaks and simplification of tax collection and filing.
The bill aims to support growth without causing inflation and will be based on feedback from taxpayers.
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