The new Income Tax Bill aims to replace the Income Tax Act of 1961, which has been in place for six decades. The bill is expected to be discussed in the Union Cabinet today.
Finance Minister Nirmala Sitharaman unveiled the new bill during her budget speech. The bill will include amendments to the 2025-26 budget provisions concerning income tax rates, slabs, and tax deduction at source.
The new income tax bill will not have a new burden
Finance Secretary Tuhin Kanta Pandey stated at a PHD Chambers event that the new Income Tax Bill will be noticeably different. He mentioned that the approach to drafting laws is evolving and assured that the new bill will not introduce any new taxes or additional burdens.
We are not implementing any significant alterations to the policy," stated Finance Secretary Tuhin Kanta Pandey. He stressed that their goal is to prevent any destabilizing situations, and the new law will be simple. The Finance Secretary mentioned that laws should not be created exclusively for legal professionals.
The new Income Tax Bill, prepared in six months, aims to simplify the language to make it more understandable for taxpayers. As a result, the new law has been made concise, with obsolete provisions removed to decrease complexity.