New Income Tax Bill: Finance Minister Nirmala Sitharaman on Saturday said that she may introduce the new Income Tax Bill in the Lok Sabha next week. The new Bill, which will replace the six-decade-old I-T Act, has already been approved by the Union Cabinet, chaired by Prime Minister Narendra Modi, 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 in 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.
To another question, the Finance Minister said the last week’s Budget announcement on customs duty rationalisation is a work that has been on since the last two years.
The Finance Minister had first announced a comprehensive review of the Income-Tax Act, 1961 in the July 2024 Budget.
Finance Minister Nirmala Sitharaman, in her 2025-26 Budget speech, said the new I-T Bill will carry forward the spirit of “Nyaya” (justice) based on the concept of “trust first, scrutinise later”.
“The new bill will be clear and direct in text with close to half of the present law, in terms of both chapters and words. It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation,” Sitharaman had said.
As part of comprehensive review of customs rate structure announced in July 2024 Budget, on February 1, 2025 she proposed to remove seven tariff rates.
This was over and above the seven tariff rates removed in the 2023-24 Budget.
There will be now only eight remaining tariff rates, including ‘zero’ rate.
With PTI Inputs
