New Delhi
The new Income Tax bill will be introduced in the next session of Parliament i.e. monsoon session. This information was given by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday. The new Income Tax Bill-2025 will replace the six decade old Income Tax Act-1961. This will simplify direct tax laws, remove ambiguities and reduce tax disputes.
The Finance Minister said that the process of simplification is based on three main principles, including no changes in tax policy to ensure text and structural simplification, certainty and continuity for clarity and no amendment in tax rates to maintain forecast for taxpayers.
Based on Global Best Practice, the purpose of this bill is to bring ease of business by providing clarity in the rules. The number of words in the new income tax bill has been reduced to 2,59,676. This figure was at 5,12,535 in the old income tax bill. The official government statement said that the number of chapters in the new income tax bill has been reduced to 23, while the number in the old income tax bill was 47. Apart from this, the number of sections has been reduced from 819 to 536.
Industry experts say that the new income tax bill-2025 will make the tax system more transparent in the country and with this it will increase the trust of taxpayers. KPMG partner in India, Tax, Himanshu Parekh said that a good aspect of the new bill is that it has strategic use of tables and formulas, which will help simplify the interpretation of the provisions. The Bill aims to reduce disputes and litigation by increasing the certainty of taxpayers. According to Rohinton Sidhwa, partner of Deloite India, this improvement is an important step towards modernizing India’s tax structure, bringing more clarity and proficiency.
