Synopsis
Union Finance Minister Nirmala Sitharaman is optimistic about introducing the new Income Tax Bill next week, which will undergo review by the Parliament's Standing Committee. The bill aims to enhance middle-class income and simplify tax filing processes.Key Takeaways
- New Income Tax Bill to be introduced soon.
- Focus on increasing middle-class income.
- Bill approved by Prime Minister Narendra Modi's Cabinet.
- Streamlining the filing process.
- Old Income Tax Act being simplified significantly.
New Delhi, Feb 8 (NationPress) Union Finance Minister Nirmala Sitharaman expressed optimism on Saturday regarding the introduction of the new Income Tax Bill in the upcoming week, which is set to be reviewed by the Parliament's Standing Committee on Finance.
The bill aims to increase disposable income for the middle class and streamline the filing process. It has received approval during a Cabinet meeting led by Prime Minister Narendra Modi.
In a media briefing following her address to the Central Board of Directors of the Reserve Bank in a post-Budget meeting, FM Sitharaman stated that once all procedures are finalized and the bill is approved by Parliament, the government will determine the timing for its implementation.
"I am hopeful that it will be presented in the Lok Sabha next week. The process involves committee recommendations, after which the government, through the Cabinet, will decide which amendments to incorporate," the Finance Minister remarked.
"Following this, it will be sent back to Parliament. The rollout date will be decided once Parliament passes it," she added.
Prior to the Cabinet's endorsement of the Income Tax Bill, insiders indicated that the legislation would likely aim to expand the tax base, especially in light of the increased exemption limit of Rs 12 lakh established in the Union Budget.
The existing Income Tax Act was enacted in 1961, and the new act is being developed to meet the demands of the 21st century, as per sources familiar with the situation.
The simplification aspect of this bill can be highlighted by the fact that the old Income Tax Act comprises approximately 6 lakh words, which will be significantly condensed to around 3 lakh words in the new bill, making it easier for taxpayers to understand.
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