New Delhi:
Sources said that the Union Cabinet on Friday approved the new income tax bill, which would replace the six decades old IT Act.
The new bill wants to simplify the direct tax law to understand the law and does not want to implement any new tax burden. It will not have provisions and explanations or long sentences.
Sources said that the cabinet headed by Prime Minister Narendra Modi approved the new income tax bill.
Sources said that the new Income Tax bill will now be introduced in Parliament next week and it will be sent to the Standing Committee of Parliament on Finance.
The first phase of the ongoing budget session ends on 13 February. The session will be re -joined on March 10 and will sit till 4 April.
Finance Minister Nirmala Sitarman announced in Budget 2025-26 that the new tax bill would be introduced in the ongoing session of Parliament.
Nirmala Sitarman first announced a comprehensive review of the Income Tax Act, 1961 in the budget of July 2024.
CBDT established an internal committee to maintain reviews and make the Act brief, clear and easier to understand, which would reduce disputes, cases, and will give taxpayers more tax certainty. In addition, 22 specific sub-committees have been established to review various aspects of the Income Tax Act.
Public input and suggestions were invited to four categories – simplification of language, reduction in litigation, reduction in compliance, and fruitless/obsolete provisions.
The Income Tax Department has received 6,500 suggestions from stakeholders on review of the Income Tax Act.
(Tagstotransite) Union Cabinet (T) Union Cabinet Meeting (T) Union Cabinet Decision
