The central cabinet recently approved a new Income Tax Bill, which is set to be introduced in Parliament today. After its introduction, the bill is expected to be referred to the Parliamentary Standing Committee for further review. The proposed bill consists of 536 sections, 23 chapters, and spans 622 pages. It aims to replace the existing Income Tax Act of 1961 and will come into effect from April 1.
Key Objectives of the Bill
- The primary goal of the new bill is to simplify the language of tax laws.
- It does not alter the existing tax slabs or revise tax rebates.
- By simplifying tax laws, the bill seeks to reduce disputes and litigations, ensuring greater clarity and certainty for taxpayers.
Review and Stakeholder Input
To oversee the review process, the Central Board of Direct Taxes (CBDT) has set up an internal committee. Additionally, 22 special sub-committees have been formed to analyze different aspects of the proposed bill.
Before drafting the bill, the government sought public feedback on four key areas:
- Simplification of language
- Reduction of litigation
- Minimization of compliance burden
- Elimination of redundant or outdated provisions
The Income Tax Department received 6,500 suggestions from stakeholders during the review process.
This proposed legislation is expected to modernize India’s tax framework, making it clearer, more efficient, and easier to understand for taxpayers.
