Years
New taxes will not be levied in the bill. Instead, this tax will focus on simplifying laws, reducing legal complexities and making compliance easier for taxpayers.
After the cabinet approval, Nirmala Sitharaman introduced the new Income Tax Bill in Parliament on Thursday. The Bill, which replaces the Income Tax Act, 1961, aims to make India’s tax system simple and modern. It will also simplify the legal language so that taxpayers can easily understand the provisions. New taxes will not be levied in the bill. Instead, this tax will focus on simplifying laws, reducing legal complexities and making compliance easier for taxpayers.
It will have small sentences, provisions and clarifications. The government has also said that the new law will be 50 percent shorter than the current law. A major goal is also to reduce litigation. The Bill may offer less punishment for some offenses, making the tax system more taxpayer-friendly. The Union Cabinet approved the new Income Tax Bill on February 7, which would replace the six decades of old Income Tax Act. Some opposition members, including the Saugat Rai of the Trinamool Congress, were protested by the bill being introduced in the House. The Finance Minister introduced the Bill in the House amid the objections of the members and requested the Lok Sabha Speaker Om Birla to send it to the Select Committee of the House.
The new bill is an exercise to make it easier to understand the direct tax law and not put any new tax burden. There will be no provision and clarification or difficult sentences. The new bill was announced by Finance Minister Nirmala Sitharaman in her budget speech on 1 February. The new Income Tax Bill, which replaces the six-decade-old Income Tax Act 1961, will make the direct tax laws easier to read, remove ambiguity and reduce litigation.
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