New Delhi3 minutes ago
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The new income tax bill will be introduced in the Lok Sabha on Thursday, 13 February. The 622 -page bill will replace the 6 decade -old Income Tax Act 1961. The proposed law will be called the Income Tax Act 2025 and is expected to be effective in April 2026.
4 big things about new income tax bill …
- The term ‘Previous Year’, stated in the Income Tax Act, has been replaced with ‘Financial Year’ and Assessment Year from Tax ‘Year’. The bills of the bill have come down from 823 to 622. However, the number of chapters is only 23. Sections have been increased from 298 to 536 and schedules have also increased from 14 to 16.
- The new Income Tax bill will be counted under any undisclosed income, such as cash, bullion and jewelery. This has been done so that digital transactions can also be controlled in a transparent and legal manner.
- The bill includes taxpayers charter, which will protect the rights of tax payers and make the tax administration more transparent. This charter will protect the interests of taxpayers as well as clear the rights and responsibilities of the tax authorities.
- Salary related cuttings, such as standard deduction, gratuity and leave encashment have now been listed at the same place. The difficult experiences and provisions in the old law have been removed, which will make it easier for taxpayers to understand.
Bill will be sent to Parliamentary Committee
The new income tax bill was approved by the cabinet on Friday. After being introduced in the Lok Sabha, it will be sent to the Parliamentary Committee. The committee will give its recommendations, then the government will decide through the cabinet whether these amendments need to be included.
After this the bill will return to Parliament and then the government will decide on the date of its rollout. The government was trying to make the Income Tax law easier for the last several years. For this, a task force was created in 2018, which submitted its report in 2019.
