The government will introduce the new income tax bill in the Lok Sabha on 10 February. On 7 February, it is expected to get the union cabinet approval. The government will try to pass this bill soon in Parliament. On its implementation, the Income Tax Act, 1961, more than six decades, will end. The use of new rules and laws of income tax will begin. Income tax rules are also called direct tax code.
Finance Minister announced in July last year
The focus of Prime Minister Narendra Modi’s government at the Center has been to make the tax rules easier. Direct Tax Code (Direct tax code) Discussion on about the discussion started many years ago. However, a big announcement in this regard Finance Minister Nirmala Sitharaman (Nirmala sitharman) The union budget presented on July 23, 2024. He had said that the government would review the Income Tax Act, 1961. He had said that its purpose is to enact a law which will be solid and easy to read and understand.
The number of disputed tax cases will decrease
The Finance Minister had said that the work of reviewing the rules of income tax will be completed in six months. The government formed a committee for this. The government believes that due to easy tax rules, tax related dispute cases will decrease. People’s interest in following tax rules will increase. According to an estimate, currently the number of controversial cases of direct tax is around 2.7 crore, out of which around Rs 35 lakh crore is stranded.
New rules will be easy to read and understand
Experts say that in the last more than 60 years, the government has made several changes in the rules of income tax. Due to this, the provisions of the Income Tax Act, 1961 with 298 sexes and 23 chapters have become quite complicated. These rules of income tax have become complicated not only for taxpayers but also for taxpayers. Efforts have been made to eliminate this complexity in the new income tax bill. New rules have been made such that it will be quite easy to read and understand. The standards of international law have also been taken care of in preparing them.
Also read: Good news for Home Buyers, resolution process continues even if the key of the house will be found
Non-essential tax rules will end
Experts say that the focus of the government is to make such rules easier, which are quite complicated. These include residency laws in terms of income tax. The second example is Capital Gens Tax rules. However, the government has tried to make the Capital Gens Tax rules easier in the budget last year. However, experts say that they need to be made easier. Experts also say that the government will end the rules which are no longer needed. Also, there will be a focus on increasing the use of technology in income tax compliance.