Budget 2025: Officials of the Finance Ministry and the Prime Minister’s Office (PMO) have worked closely with the committee to finalize the Direct Tax Code over the last six to eight weeks.
Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025. She can announce the Direct Tax Code (Direct Tax Code 2025) in the general budget. This new law will replace the Income Tax Act, 1961. The purpose of bringing DTC is to simplify the provisions, remove irrelevant sections and make the language more understandable to the common people. Tax experts believe that this will simplify tax laws, reduce legal disputes and make the entire process easier for taxpayers.
The committee formed to review the Income Tax Act is deciding whether the new law will be in two parts or three. The government had earlier said that the draft law would be released for public comments, but now it has been decided that the bill will be introduced in Parliament first. After this, it can be amended based on the feedback from taxpayers and experts.
It is being finalized
According to a Times of India report, officials of the Finance Ministry and the Prime Minister’s Office (PMO) have worked closely with the committee to finalize this bill in the last six to eight weeks. It is expected that the Finance Minister will mention the new bill in her budget speech on February 1. However, it is not yet decided whether the bill will be introduced in the first part of the session or in the second part.
Third attempt to change the Income Tax Act
This is the third attempt when an attempt is being made to rewrite the Income Tax Act. Earlier in 2010, the Direct Tax Code Bill was introduced. After this, the Modi government constituted a panel of experts, but their report was not made public and the recommendations were not implemented.
In the new law, instructions have been given to remove thousands of provisions. Also, sections that have become irrelevant over the years will also be excluded. The committee has also been instructed to make the language as simple as possible so that common people can understand it easily. However, the government is not adding new issues to it at the moment.
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