Parliament LIVE | Govt shall take measures to propel growth: Sitharaman
The FM is likely to table the new Income Tax Bill which is part of an effort to reform the tax system and overhaul the existing tax structure
Finance Minister Nirmala Sitharaman is likely to table the New Income Tax Bill in Parliament on Tuesday (February 11).
The Union cabinet approved the New Income Tax Bill on Friday (February 7). The new bill will replace the existing Income Tax Act 1961. After the bill is introduced in Parliament, it will be sent to the Standing Committee on Finance for review. The bill will again go to the cabinet with the recommendations of the parliamentary committee.
Bid to reform tax system
This bill is part of an effort to reform the tax system and overhaul the existing tax structure to make it more streamlined and transparent.
The Central Board of Direct Taxes set up an internal committee to supervise the review process with the intention to create a more straightforward and comprehensible Income Tax Act.
Twenty-two specialised sub-committees were formed to examine different aspects of the Act.
Also Read: Sitharaman may introduce new income tax bill in Lok Sabha next week
It is reported that the new bill may reduce the number of sections by about 30 per cent in an effort to simplify the tax rules and their clauses, and the number of pages may be reduced by half.
Some experts say that the new bill would enhance the ease of doing business, reduce ambiguity in interpretations, and improve tax administration and compliance.
The Finance Secretary Tuhin Kanta Pandey has said that the proposed New Income Bill will be straightforward, devoid of lengthy explanations and complex provisions. He said the new legislation will maintain tax neutrality.
The new bill aims to simplify direct tax laws while maintaining current tax obligations.
It seeks to enhance tax certainty by minimising ambiguity and reduce the number of disputes.
The general public was invited to offer suggestions covering four areas of the Bill: language simplification, reduction in litigation, streamlining compliance, and the identification of outdated provisions. The income tax department received about 6,500 suggestions from various stakeholders.
