New income-tax Bill likely to receive Cabinet approval on Friday

New bill will not impose any additional taxes or create new burdens, says finance secretary

The new income-tax bill is likely to be approved by the Union Cabinet on Friday, according to sources. After the Cabinet’s nod, it may be tabled in Parliament next week.

 

Meanwhile, Tuhin Kanta Pandey, finance secretary, said that the new law will not contain long sentences, provisos (conditions), or explanations.

 

"When you see the new income tax bill next week, you will see a very different bill. The way we write laws is undergoing a change. You will see fewer long sentences and probably no provisos or explanations," Pandey stated during an event organised by PHD Chamber of Commerce.

 

 

The new bill will not impose any additional taxes or create new burdens, the secretary added. He emphasised that there will not be significant changes to policy, as the goal is to avoid creating an unstable situation. Additionally, Pandey stated that the new law is designed to be straightforward and should be comprehensible to all citizens, not just legal professionals.

 

Finance Minister Nirmala Sitharaman, in her Budget speech, had announced the Centre's plan to introduce a new income tax bill in Parliament. This proposed legislation aims to replace the Income Tax Act of 1961, with the goal of simplifying its terms and clauses. “The new income tax bill will be clear and direct,” Sitharaman said in the Budget speech.

 

Ravi Agarwal, chairman of the Central Board of Direct Taxes (CBDT), in a recent interview with Business Standard, said that the department had received more than 10,000 suggestions for the new law.

 

"We have incorporated their suggestions. When it is presented in Parliament, it will go to the standing committee and be open for public consultation again. Regarding the timing of the implementation, it will all depend on when the document is approved by Parliament. After parliamentary approval, rules and forms will be made," Agarwal said.