New Delhi, Feb 8 : Union Finance Minister Nirmala Sitharaman announced on Saturday that the new Income Tax Bill is expected to be introduced in the Lok Sabha next week. Once tabled, it will be referred to the Parliament’s Standing Committee on Finance for review and recommendations.
Designed to simplify tax procedures and provide financial relief to the middle class, the bill was approved during a Cabinet meeting chaired by Prime Minister Narendra Modi.
Following a post-Budget meeting with the Central Board of Directors of the Reserve Bank, Sitharaman outlined the next steps. “I am hopeful that the bill will be introduced in the Lok Sabha next week. The Standing Committee will review it and give its recommendations. After that, the government, through the Cabinet, will assess whether to adopt the suggested amendments, introduce additional changes, or move forward as it stands,” she explained.
She emphasized that after Parliament passes the bill, a decision will be made on the best time to implement it. “Once the legislative process is complete, the government will determine when the new law will be rolled out,” Sitharaman added.
Sources indicated that before Cabinet approval, discussions centered on broadening the tax base, particularly after the Union Budget raised the income tax exemption limit to ₹12 lakh, leading to a reduction in the tax base.
The new Income Tax Bill will replace the existing Income Tax Act, which has been in effect since 1961. According to those close to the development, the new legislation is tailored to meet modern requirements and drastically reduce complexity. The current law contains about six lakh words, but the new bill will trim this down to around three lakh words, making it simpler and more user-friendly for taxpayers. ( Inputs from IANS)