New Delhi, Feb 1: The government will introduce a new Income Tax bill in Parliament next week, replacing the six-decade old income tax act of 1961.
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 said.
She said the government has implemented several taxpayer reforms in last 10 years and the new income-tax bill will be introduced next week.
Addressing a post budget press conference, Sitharaman said, "I hope it (the Bill) will get passed without much of a difficulty".
The new income tax bill will go to the Standing Committee of Parliament, she added.
Sitharaman had in July last year announced a comprehensive review of the Income-tax Act 1961 to be completed within 6 months.
Following that, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.
Over 6,500 stakeholder suggestions have been received, and the review has been completed.
The Income Tax Act 1961, which deals with imposition of direct taxes -- personal I-T, corporate tax, securities transaction tax, besides gift and wealth tax, currently has about 298 sections and 23 chapters. |
