The government is set to introduce the new Income Tax Bill in the Lok Sabha on Thursday, with sources indicating that it will undergo detailed consultations. The bill is expected to be sent to a Select Committee for further examination before moving forward. The Union Cabinet had already approved the bill last week, and Finance Minister Nirmala Sitharaman had previously suggested that it would be referred to a parliamentary committee for scrutiny. She explained that after the committee’s recommendations, the Cabinet would decide on necessary amendments.
The bill is part of the government’s broader initiative to reform the Income-tax Act, 1961, as proposed in the July 2024 Budget. The objective is to simplify the Act, making it more concise and reducing legal disputes. Sitharaman had previously emphasized the government’s commitment to modernizing tax laws to enhance clarity and efficiency, aligning with its ongoing reforms aimed at improving the tax system.
During her budget speech on February 1, Sitharaman reaffirmed the government’s tax reforms over the past decade, including faceless assessment, a taxpayer charter, faster returns processing, and the “Vivad se Vishwas” dispute resolution scheme. She reiterated the tax department’s commitment to a “trust first, scrutinize later” approach and confirmed that the new Income Tax Bill would be introduced in Parliament soon.
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