The government may introduce a new Income Tax Bill in the upcoming budget session of Parliament, the objective of which is to simplify the existing Income Tax law, make it understandable and reduce the number of pages by about 60 percent. In fact, the current Income Tax Act is a bit complex and its number of pages is so high that it would be difficult for a common man to understand and read it. For this reason, the government can take this decision to simplify the income tax law. Let us tell you, Finance Minister Nirmala Sitharaman had announced in the July budget a comprehensive review of the six decade old Income Tax Act, 1961 within six months.
What is the complete information
According to a news published on PTI, a source said that the new income tax law will be introduced in the budget session of Parliament. This will be a new law, not an amendment to the existing law. Currently, the draft law is being considered by the Law Ministry and it may be introduced in Parliament in the second half of the budget session.
Let us tell you, the budget session will run from January 31 to April 4. The first part (31 January-13 February) will begin with President Draupadi Murmu addressing the joint session of the Lok Sabha and the Rajya Sabha, followed by the presentation of the Economic Survey for 2024-25. The Union Budget for the financial year 2025-26 will be presented on February 1. After this, Parliament will resume on March 10 and will continue till April 4.
What will be the benefits of the new tax law
Following the Budget announcement by Finance Minister Sitharaman for a comprehensive review of the Income Tax Act, 1961, CBDT had constituted an internal committee to oversee the review and make the Act shorter, clearer and easier to understand. This will reduce disputes and litigation and provide greater tax certainty to taxpayers. Apart from this, 22 special sub-committees have also been formed to review different aspects of the Act.
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