The Union Cabinet approved the new Income Tax Bill on 7 February. It will replace six decades i.e. 60 years old Income Tax Act 1961. It was reported that the new Income Tax Bill will be introduced in Parliament in the week starting from 10 February. On Saturday, February 8, Finance Minister Nirmala Sitharaman said that she hoped that the Income Tax Bill will be introduced in the coming week and after that it will be sent to the Committee of Parliament. The first phase of the current budget session of Parliament ends on 13 February. The session will start again on March 10 and will run till 4 April.
In the press conference after addressing the Central Board of Directors of the Reserve Bank of India, Sitharaman said that the government will decide when the new income tax bill should be introduced after the entire process is completed and passed in Parliament.
Finance Minister Nirmala Sitharaman had announced while presenting the budget 2025-26 that a new income tax bill would be introduced in the current session of Parliament. Sitharaman first announced the Comprehensive Review of the Income Tax Act, 1961 in the budget of July 2024.
New bill will make it easier to understand direct tax
The new bill is an exercise to make direct tax law easier to read and understand. There will be no provision and clarification or difficult sentences. There is no new tax through the new income tax bill. The new bill will remove ambiguity and reduce litigation. The new act will be free from all the amendments and sections that are no longer important. Also, the language will be such that people can understand it without the help of tax experts.
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