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The new Income Tax bill, which replaces the 1961 Income Tax Act, will be presented in Parliament during the ongoing budget 2025 session, which is probably probably on Monday.
New Income Tax Bill.
New Income Tax Bill: Union cabinet has approved New income tax billTo simplify tax laws and provide more clarity for taxpayers. The move is expected to modernize the tax system, reduce litigation and encourage compliance. The bill, which replaces the Income Tax Act of 1961, will be presented in Parliament during the ongoing budget 2025 session, perhaps most on Monday. Here you need to know about the new income tax bill and its effect.
Why a new income tax bill?
The current Income Tax Act, 1961 has made several amendments in decades, making it complicated and difficult for taxpayers. New Income Tax Bill is intended:
– Simple tax provisions with clear language
– Reduce legal disputes by removing ambiguity
– Make compliance easier for individuals and businesses
-Promote a trust-based tax system, where the investigation comes later
Expectations from new income tax bill
1. Simplified tax structure
The new bill is expected to cut the length of the existing law by about half, making it easier to understand. The language will be more direct and unclear, which will reduce the chances of misinterpretation.
2. No budget required for tax relief
A major attraction of the new tax bill is that it is likely to be a unique feature that will eliminate the need to wait for the budget for any kind of income tax relief or amend the Income Tax Act.
According to reports, some provisions of the new Income Tax Bill have been proposed which will allow the government to modify the limit/exemption limit or quantity only through executive orders.
3. Focus on digital and paperless taxation
The bill is expected to emphasize digital tax filing and a paperless assessment system to reduce human intervention. It aligns with the government’s faceless assessment initiative to reduce corruption and promote transparency.
4. Strengthen tax payer rights
The new tax bill is likely to focus on the ‘Trust-First’ approach, which means that taxpayers will not be subjected to investigation unless there is a clear case of non-transportation. It aims to reduce harassment and litigation.
How will it affect you?
– Personal person: A simplified structure means easy tax filing and low taxes for the middle class.
– Business: Less legal hurdles and a ** clear taxing code ** make compliance easier.
Why is the government bringing the new income tax bill?
The aim of the new law, also known as a direct tax code, is to re -prepare the existing income tax structure to simplify the provisions. It will replace the current Income Tax Act, 1961.
During his budget speech 2025, Finance Minister Nirmala Sitarman said that the bill would embrace the same philosophy of the judicial which was at the center of the Indian Justice. The law had canceled the Indian Penal Code of July 2024 to 1860.
In the budget speech, he said, “I am happy to inform this August House and the country that the new income tax bill will pursue the same spirit of” judge “. The new bill will be clear and directly in the text. The current law In half part of both, in the context of both chapters and words.
