New income tax bill will be presented in Lok Sabha tomorrow, it has been approved by Modi cabinet
Finance Minister Sitharaman had said about the bill on February 8, "Regarding the proposal of the New Income Tax Bill, I hope that it will be introduced in the Lok Sabha next week. After that it will be sent to a committee. After the parliamentary committee gives its recommendations on it, this bill will again go to the cabinet.
The New Income Tax Bill (New Income Tax Bill 2025) announced by Union Finance Minister Nirmala Sitharaman is likely to be introduced in the Lok Sabha tomorrow on Thursday. Earlier, Nirmala Sitharaman had talked about bringing the New Income Tax Bill during her budget speech on February 1.
After introducing the bill, it will be sent to the Select Committee of Lok Sabha for detailed discussion. A copy of the bill has been sent to the Lok Sabha members.
Last week on Friday, the New Income Tax Bill was approved in the Union Cabinet meeting. Sitharaman will introduce this bill.
Filing tax returns will be easier
It is believed that with the enactment of this bill, filing income tax returns will become even easier.
The New Income Tax Bill will replace the existing Income Tax Act 1961. Finance Minister Sitharaman first announced a comprehensive review of the Income Tax Act, 1961 in the July 2024 budget.
The CBDT had constituted an internal committee to oversee the review and make the Act concise, clear and easy to understand.
The bill will be sent to the parliamentary committee
Finance Minister Sitharaman had said about the bill on February 8, "Regarding the proposal of the New Income Tax Bill, I hope that it will be introduced in the Lok Sabha next week.
After that it will be sent to a committee. After the parliamentary committee gives its recommendations on it, this bill will again go to the cabinet.
After the approval of the cabinet, it will be introduced again in the Parliament. I still have to go through three important stages."
The new Income Tax Bill 2025 or the new Direct Tax Code is part of a larger effort to reform India's tax system. It aims to reform the existing tax structure to make it more streamlined and transparent.
The bill will be in simple and easy words
There will be no provision for imposing any new tax in the new income tax bill. It will only rationalize and simplify the tax structure.
It will have provision for many new reforms in the existing law. There may even be a provision for reducing the punishment for many crimes.
Also, the language related to tax in the new bill will be simple so that even the common taxpayer can understand it. The aim of the new bill will be to reduce litigation.
The aim of the bill is also to bring transparency in the tax system. Old and outdated terminology will also be removed. Overall, this bill will be in simple and easy words.