Nirmala Sitharaman Brings Income Tax Bill to Lok Sabha for Discussion
After receiving cabinet approval, Union Finance Minister Nirmala Sitharaman tabled the new Income Tax Bill in Parliament on Thursday. The proposed legislation aims to replace the Income Tax Act, 1961, with a modernized and simplified tax system.
The bill seeks to make tax laws more accessible by using clear, concise language, eliminating complex legal jargon, and reducing ambiguities. It will not introduce new taxes but will streamline existing laws, cut down legal complexities, and make compliance easier, as previously confirmed by the finance secretary.
A key feature of the bill is its reduced length-nearly 50% shorter than the current Income Tax Act. It will have shorter sentences, fewer provisos, and clearer explanations, with an emphasis on minimizing litigation.
The new law may introduce lower penalties for certain offences, making the tax system more taxpayer-friendly. The current Income Tax Act has 298 sections across 23 chapters, covering personal income tax, corporate taxes, securities transaction tax, and gift tax.
The revised legislation is expected to remove outdated amendments and sections, ensuring a more straightforward structure that taxpayers can understand without professional assistance.
If passed, the new tax system will take effect from the financial year 2025-26, applying to taxpayers from the assessment year 2026-27.
