Synopsis
The new Income Tax Bill, aimed at benefiting the middle class and simplifying tax filing, will be introduced in Parliament next week after receiving Union Cabinet approval. The bill seeks to modernize tax laws and expand the tax base, enhancing the convenience for taxpayers in a digital age.Key Takeaways
- New Income Tax Bill to be presented in Parliament.
- Aims to benefit the middle class and simplify filing.
- Drafted based on a review committee's recommendations.
- Focus on expanding the tax base amid rising exemption limits.
- Adapting to the digital landscape for taxpayer convenience.
New Delhi, Feb 8 (NationPress) With the objective of empowering the middle class financially and streamlining the filing process, the upcoming Income Tax Bill is poised to be presented in Parliament next week after obtaining the Union Cabinet's endorsement.
This legislation, approved during a Cabinet meeting led by Prime Minister Narendra Modi on Friday, is set to be introduced in Parliament next week before it moves to the Parliament's Standing Committee on Finance.
Prior to the Cabinet's approval of the Income Tax Bill, informed sources indicated that the legislation would aim to expand the tax base, especially in light of the tax base contraction due to the exemption limit increase to Rs 12 lakh in the Union Budget.
The existing Income Tax Act has been in effect since 1961, and the new Income Tax Act is being designed to address the demands of the 21st century, replacing the current law, as per sources close to the proceedings.
A review committee was established to develop the new Income Tax legislation, which replaces the previous complex law. As reported, the government has formulated the new Income Tax Bill based on the committee's recommendations.
In this digital age, taxpayers will be able to conduct various tasks online independently. Consequently, the new Income Tax Bill will incorporate user-friendly adjustments that can be easily understood online, aiming to simplify the system for the general public.
Moreover, the government intends to provide significant relief to taxpayers to stimulate private consumption, which would, in turn, positively impact the economy's health.
