Finance Minister Nirmala Sitharaman recently announced that the new Income Tax Bill will be introduced in Parliament next week. This new bill is set to replace the Income Tax Act of 1961. Its purpose is to simplify the income tax laws. Through this, taxpayers will get more quality. This will also reduce disputes. The main objective of the new bill is to simplify the legal terms. This will not cause any difficulty for taxpayers to understand the tax system.

What did the Finance Minister say?

The Finance Minister said that this bill will be almost half of the existing law. This will make it easier for taxpayers and the tax administration to understand it. It will help reduce disputes and litigation by reforming the Income Tax Act. The new Income Tax Bill will have less than half the provisions of the existing law. This will make it easier and more transparent. The Union Cabinet approved the new Income Tax Bill on Friday. It is set to replace the existing Income Tax Act of 1961.

The Finance Minister said in the Budget 2025 speech that our government had earlier replaced the Indian Penal Code with the Indian Judicial Code. Now the Income Tax Bill also carried forward the same spirit of justice. The new Income Tax Bill 2025 will provide relief. This will not require budget updates or amendments in the Income Tax Act.

These will be the changes in the new bill

It is expected that the rules for determining residential status will be simplified. The new bill will have less than half the provisions as compared to the current law. This bill will work towards making compliance easier for taxpayers and income tax officials. The current Income Tax Act is considered complex. This makes it difficult for taxpayers to understand it.

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