New Income Tax Bill: The new Income Tax Bill can bring great relief to taxpayers and can make the tax system simpler, more transparent and hassle-free than before.
New Income Tax Bill Explained: Modi Government is going to take a big decision regarding the income law. Under this, a big change can be made soon in the Income Tax Law which has been in place since 1961. Now a new Income Tax Bill is going to come, which will make the tax system easy and transparent. This will make it easier to pay tax, the language of the law will be easy and there will be an opportunity to avoid legal hassles.
When can the new income tax bill be implemented?
Tomorrow on 7th February, a cabinet meeting is going to be held under the chairmanship of PM Modi government at 6 pm. There is a possibility of approval of the new income tax bill in the cabinet meeting. After this, the government can present this bill in the Parliament on Monday i.e. 10th February.
While presenting the Budget 2025-26, Finance Minister Nirmala Sitharaman said that the government is going to introduce a new Income Tax Act in Parliament next week. This new Income Tax Act is being brought on the basis of the announcement made in the last Budget (2024-25). In July 2024, the Finance Minister had said that a complete review of the Income Tax Act, 1961 would be completed within six months. Now the government is ready to introduce this bill.
According to reports, if everything goes well, the new tax system can be implemented from April 1. In such a situation, the biggest question now is what changes will be made in this new income tax bill? Let’s understand in simple language in 10 points.
1. 60 year old law will be abolished
The Income Tax Act 1961 that is in force right now has been in force since 1961. Now it will be completely abolished and a new law will be introduced, which will be updated according to the current times.
2. Paying tax will be easy
The new law will be written in fewer words, in easy language so that common people can understand it. The current law is written in 6 lakh words, which will be reduced to half. That means less complexity, less confusion.
3. No change in tax rates
Tax slabs will not be changed in this bill, that is, the current tax rates will remain the same. The tax system will just be made simpler and more rational.
4. Promotion of digital tax system
The process of filing taxes will be completely digitalized. This will reduce paperwork and people will be able to file their taxes easily.
5. Less legal hassles for taxpayers
The government’s focus will be on reducing cases (tax litigation). There may also be a provision to reduce punishment for many crimes.
6. Transparency in the new tax law
The government will make the tax rules more clear and transparent so that there is no problem. This will cause less trouble to the taxpayers and there will be no need to adopt wrong ways to save tax.
7. A new ‘tax year’ may be implemented
The government is considering merging the Assessment Year and Financial Year. This will make the tax filing rules easier and streamlined.
8. Foreign investment will get a boost
The new law will also be clear for foreign companies and investors, which can increase investment in India. This will benefit the Indian economy.
9. Some new changes in the tax net
The government wants more and more people to join the tax system. But there will be no provision for any new tax in this.
10. Likely to be implemented from 1 April 2025
The government wants this new tax law to come into force from April 1. It can first be sent to the standing committee so that its provisions can be discussed.
How will the new income tax bill benefit you?
Let us also know what benefits common people will get from this new income tax bill. The biggest relief is that paying tax will now be easy, because the new law will be written in simple language. There will be no need to get entangled in heavy legal terms like before. The entire process will be digital, which will end the paperwork and you will be able to file tax easily online. The litigation and disputes that used to go on regarding tax payment will also reduce, because the new rules will be more clear and transparent. The biggest thing is that no new tax will be imposed. The government has clearly said that the system is just being improved, no new burden will be added.
Apart from this, there is also a plan to reduce the punishment for some tax related crimes, so that people do not have to face big punishment for small mistakes. Overall, this new bill can bring relief to taxpayers and make the tax system in India easier, more transparent and hassle-free than before.
If this bill is passed, paying and understanding taxes in India will become easier and clearer than ever before. Now it remains to be seen when and how the government implements this new law.
