Finance Minister Nirmala Sitharaman has announced to introduce a new Income Tax Bill next week. Let us know what possible changes can be made in this bill.
New Income Tax Bill: Union Finance Minister Nirmala Sitharaman, while presenting the Budget 2025-26 on February 1, has made a big announcement that a new Income Tax Bill will be introduced in Parliament next week. This bill will replace the existing Income Tax Act, 1961 and its aim will be to make the income tax process more simple and clear. The biggest thing is that this income tax law is going to change after almost 6 decades. Therefore, it is important to know what can be in this new income tax bill. Let us know about it in detail in this news.
What could be in the new tax bill?
Finance Minister Nirmala Sitharaman has announced to introduce a new Income Tax Bill next week. Let us know what possible changes can be made in this bill.
- Simple language and fewer provisions: It will be easier for taxpayers to understand.
- Promote digital processes: Tax filing can be completely digitalized.
- Reduction in litigation: Measures will be taken to reduce legal disputes.
- Single ‘tax year’: Assessment year and financial year can be combined to form one tax year.
- Reduction in deductions and exemptions: The tax structure can be made straightforward and simple.
- 15% tax on dividend income: This can bring equality across all income categories.
- 35 per cent standard tax for higher income groups: This can be implemented by removing the existing surcharge.
- Simplification of capital gains tax: There may be a uniform tax rate on different assets.
According to the government, this new law will replace the 63-year-old Income Tax Act, 1961 and amendments will be possible based on the feedback from taxpayers. Let us tell you, under the Income Tax Act 1961, the government implemented the new tax regime in the year 2020.
The law will change after 63 years
The current Income Tax Act was implemented on 1 April 1962. The new Income Tax Bill that the government is going to bring now, if it becomes a law, then the Income Tax Law will change in the country after almost 63 years. However, the talk of the new Income Tax Bill is not of today, rather the government had hinted about it during the budget in July 2024 itself. At that time the government had said that the country needs a new Income Tax Act.
Most Read Articles:
- Fixed Deposit New Rules: Good news for FD investors! RBI changed the rules regarding fixed deposit, check details
- New Liquor Policy: Big news! New liquor policy will implemented, liquor will become expensive in this state? details here
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
