The new earnings tax invoice, which was authorised by the cupboard on Friday (February 7), is predicted to be launched within the parliament tomorrow (February 11), based on sources aware of Zee Enterprise. The brand new invoice will substitute the decades-old I-T Act.
Finance Minister Nirmala Sitharaman in her Price range 2025-26 speech mentioned that the brand new tax invoice shall be submitted through the present session of Parliament. She had already proposed an entire revision of the Revenue-tax Act 1961 in her July 2024 Price range.
The brand new earnings tax invoice could first despatched to the Standing Committee in order that its provisions may be mentioned. Take a look at key issues:
New earnings invoice to switch 60-year-old I-T Act
The present Revenue Tax Act (Revenue Tax Act 1961) has been in drive since 1961. Now it is going to be fully abolished and a brand new legislation shall be introduced, which shall be up to date as per the present instances. A brand new ‘tax 12 months’ may be applied, sources advised.
The federal government is contemplating merging the evaluation 12 months and monetary 12 months. With this, the foundations of tax submitting will grow to be simpler and streamlined.
Paying taxes shall be simple
The brand new legislation shall be written in easy language in order that widespread individuals can perceive it. The present legislation is written in six lakh phrases, which shall be halved.
No change in tax charges
Tax slabs won’t be modified on this invoice, which suggests the present tax charges will stay the identical.
Promote digital tax system
The tax submitting course of shall be fully digitalised. This can cut back paperwork.
Much less authorized hassles for taxpayers
The federal government’s focus shall be on decreasing tax litigation. There may be a provision to scale back punishment for a lot of crimes.
Transparency in new tax legislation
The federal government will make the tax guidelines extra clear and clear in order that there isn’t a downside. This can trigger much less hassle to the taxpayers and there shall be no have to undertake fallacious strategies to avoid wasting tax.
International funding will get a lift
The brand new legislation may even be clear for overseas corporations and traders, which might improve funding in India. The Indian financial system will profit from this.
Some new modifications in tax scope
The federal government desires increasingly individuals to affix the tax system. However there shall be no provision for any new tax on this.
