According to the International Taxes and Transaction Service Practice partner and national leader, Pranav Saita in EY India, the change in the new income tax bill by Finance Minister Nirmala Sitaraman in the Lok Sabha on Thursday has tried to simplify the structure on Thursday.
“I think simplification is a good attempt, almost half the words that are in the current law,” Sita said.
The minister’s proposal to form a selection committee on the bill was also passed by the House. The selection committee will submit its report by the first day of the next session.
“Stability is a good thing, we do not want unnecessary disruption. He said.
There was no significant change and nothing was adverse for the taxpayer. He said that the bill has not given any new tax, but only kept the taxability provisions provided together in the previous Act.
According to the announcement during the budget, income up to Rs 12 lakh is now exempted from taxation, with a standard deduction of Rs 75,000, an income tax-free income of up to Rs 12.75 lakh for effectively salaried persons.
“On a large scale, he has tried to streamline provisions, simplify the law and make it without excess. Nothing is quite unfavorable on the evaluation front,” he said.
When it comes to expectations around the new bill, Sita said that the bill is largely in line with expectations.
He said, “There has never been an attempt to change the law. The only objective was to simplify and remove excesses.” And talking about the issues that the bills could better address in a better way, Saita exposes controversies and cases.
He said, “A little more could be seen on a better dispute solution to reduce litigation. The dispute could be more on the resolution front to bring resolve, yet nothing is unfavorable in that sense,” he said.
In terms of reforms about the new bill, Sayata stated that confusion is clear around the time limit of tax structure.
“They have done a good job by removing the previous year and the concept of a tax year. This has caused confusion in the past. This is a really good step in terms of simplifying the ideological structure. .
The newly constructed bill is 622 pages long with 536 squares, 23 chapters and 16 schedules. Bill simplifies the existing languages ​​of the current Income Tax Act of 1961. The earlier tax act had 298 blocks and 14 schedules. The new law will be applicable from April 2026 and the rules will apply after the Act is notified.
(Tagstotranslet) Income Tax (T) New Income Tax Bill
