As the New Income Tax Bill is likely to be introduced by Finance Minister Nirmala Sitharaman anytime this week, there are specualtions about the contents of the new bill and its potential positive impact on taxpayers.
Various tax experts think that the new income tax bill is likely to bring a siginificant change in India’s taxation system by focusing on simplification and modernisation rather than introducing new taxes. Even as the details are yet to be made public, the bill is expected to reduce legal complexities, streamline compliance, and make tax laws more accessible to taxpayers.
FM Nirmala Sitharaman had last week said she is likely to introduce the new income tax bill, which will replace the six-decade-old I-T Act, in the Lok Sabha in the coming week.
After introduction in the Upper House, the bill will be sent to a parliamentary standing committee for scrutiny.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the bill on Friday.
“Yesterday, the Cabinet cleared the New Income Tax proposal, I hope to have it introduced in the Lok Sabha in the coming week.
Post that it will go to a committee,” Sitharaman said a media briefing after addressing the post-Budget customary meeting with the central board of directors of the Reserve Bank of India (RBI).
The bill will again go to the Cabinet after the parliamentary committee gives its recommendations on it. After Cabinet approval, it will again be introduced in Parliament.
“I still have three critical stages to pass through,” Sitharaman said to the query regarding rollout of the new income tax law.
Sitharaman had first announced a comprehensive review of the Income-Tax Act, 1961 in the July 2024 Budget.
