Budget 2025: Govt to introduce new income tax bill next week, announces Nirmala Sitharaman
Union finance minister Nirmala Sitharaman on Saturday announced that the government will introduce the new Income Tax bill next week in Parliament
Union finance minister Nirmala Sitharaman announced on Saturday that the government will introduce the new income tax bill in Parliament next week.
“The government will introduce a new Income Tax bill next week in Parliament to take forward 'trust first, scrutinise later' concept. New income tax bill will be half of the current volume; clear and direct in wording,” the minister said in her Budget 2025 speech in Parliament.
Nirmala Sitharaman in her July Budget announced a comprehensive review of the six-decade old Income Tax Act, 1961, within six months.
Sitharaman said that over the past 10 years, the government has implemented several reforms for the convenience of taxpayers, including faceless assessment.
Income Tax Budget 2025 LIVE Updates
The bill is expected to simplify the current Income Tax (I-T) law and make it easier to comprehend.
Sitharaman also mentioned the government coming out with taxpayers' charter, faster returns process and almost 99 per cent of the income returns being on self-assessment.
The CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers, PTI reported.
Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.
Sitharaman also mentioned the government coming out with taxpayers' charter, faster returns process and almost 99 per cent of the income returns being on self-assessment.
ALSO READ: Budget announcements key highlights: Bihar takes centre stage in poll year
Big Income Tax relief to middle class
In her eighth consecutive budget speech, finance minister Nirmala Sitharaman announced a big relief to middle class taxpayers.
“The middle class provide strengths to the economy. In recognition of their contribution, we have periodically reduced the tax burdens. I am now happy to announce that there will be no income tax up to an income of ₹12 lakhs,” the finance minister announced.
(With PTI inputs)