Big Tax Reforms on the Way! New Income Tax Bill Expected in Parliament Soon, Check Details

The New Income Tax Bill is set to be introduced in Parliament next week after receiving approval from the Union Cabinet. This bill aims to simplify the tax system and offer greater financial relief to the middle class. The proposed law will replace the Income Tax Act of 1961, aligning it with the modern digital era.

Union Cabinet Clears New Income Tax Bill

The Union Cabinet, led by Prime Minister Narendra Modi, approved the New Income Tax Bill in a recent meeting. The bill will now be tabled in Parliament next week before being sent to the Parliament’s Standing Committee on Finance for further review.

According to sources, the bill focuses on widening the tax base, especially after the exemption limit was increased to ₹12 lakh in the Union Budget. The new framework aims to streamline taxation, ensuring a simpler and more transparent system for taxpayers.

Why a New Income Tax Act is Needed

The existing Income Tax Act, introduced in 1961, has undergone multiple amendments over the years, making it complex and difficult to understand. Recognising the need for a modernised system, the government formed a review committee to recommend necessary changes. The New Income Tax Bill has been drafted based on these recommendations, ensuring a simpler, more accessible tax structure.

A Digital-Friendly and Simplified Tax System

With growing digitalisation, taxpayers can now handle tax-related tasks online. The New Income Tax Bill aims to make the process even more seamless, ensuring that common citizens can easily understand and comply with tax rules.

Additionally, the bill is expected to boost private consumption, which will have a positive impact on the economy. By reducing complications and increasing financial relief, the government aims to create a more taxpayer-friendly system that encourages economic growth.