The government can present the new income tax bill in the Lok Sabha on 10 February. Union Cabinet approval will be received on 7 February. The Union Cabinet meeting is expected on 7 February under the leadership of Prime Minister Narendra Modi. India Today has given this news quoting sources. Finance Minister Nirmala Sitharaman had said while presenting the Union Budget on 1 February that the government would present the new income tax bill in Parliament next week. The government’s focus is to make income tax rules easier.
Focus on making income tax rules easier
Tax experts say that the government is going to make a big change in the rules of income tax. These rules have become many decades old. The new rules will be easy and more transparent. The new bill will replace the Income Tax Act, 1961. The Finance Minister had said on 1 February that the focus in the new income tax bill would be on the principle of justice. It is at the center of the Indian Code of Justice. He also said that it would be easy for taxpayers and tax administration to understand the new rules of income tax.
The number of disputed cases increases due to complication rules
The current rules of income tax are quite complex. It is quite difficult to understand many rules. Because of this, there is a difference in the meaning of the rules. Taxpayers make something else mean, while tax authorities make something else mean. Due to this, disputed cases increase. According to an estimate, Rs 31 lakh crore has been stranded in disputed income tax disputed cases.
The government is promoting the easement rules
The government introduced a new regimen in 2020 to make income tax rules easier. Tax rates are low in this regimen, but there are no deductions. Initially, taxpayers did not show interest in this regimen. But, now the interest of taxpayers has increased in it. According to the government’s data, about 72 percent of individual taxpayers who file income tax returns are using the new regimen.
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Taxpayers announced big relief in new regimen
The government is constantly trying to make the new reiztive attractive. Such taxpayers using this reizards will no longer have to pay any tax, whose annual income is up to Rs 12 lakh. People doing jobs will not have to pay tax on income up to Rs 12.75 lakh.