India Business Journal - Union Cabinet approves new Income Tax Bill to be presented in Parliament next week

ECONOMY

Union Cabinet approves new Income Tax Bill to be presented in Parliament next week

IBJ Bureau
Feb 08, 2025

The Union Cabinet on Friday approved a new Income Tax (I-T) Bill, which will replace the six decades old I-T Act, sources told the PTI. The legislation will be introduced in Parliament next week and would be sent to the Standing Committee on Finance, the report added.

The new Bill seeks to make direct tax law simple to understand and not to impose any new tax burden. It will not have provisions and explanations or long sentences.

Finance Minister Nirmala Sitharaman had announced in her recent Budget speech that the new tax Bill will be introduced in the ongoing session of Parliament.

The minister had first announced a comprehensive review of the Income-tax Act, 1961, in her July 2024 Budget.

The CBDT had set up an internal committee to oversee the review and make the Act concise, clear and easy to understand, which will reduce disputes, litigations and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act, the report added.