New Income Tax Bill: A meeting of the Union Cabinet is going to be held tomorrow (Friday) under the chairmanship of PM Narendra Modi. The new Income Tax law can be approved in this meeting.
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New Income Tax Bill: A meeting of the Union Cabinet is going to be held tomorrow (Friday) under the chairmanship of PM Narendra Modi. The new Income Tax law can be approved in this meeting. After which this new bill can be introduced in the Parliament very soon.
The Income Tax Act of 1961 is still in force in the country. While presenting the General Budget 2025-26 in Parliament, Finance Minister Nirmala Sitharaman announced that now the country needs a new Income Tax Law and a bill for this will be tabled in the House in this session. In such a situation, a review committee was formed for the new Income Tax Law in the country.
Income up to Rs 12 lakh is tax free
During his budget speech, the Finance Minister had announced that now income up to Rs 12 lakh will be tax free. Along with this, a new income tax bill was also announced. It was announced that this bill will be introduced in this budget session. Then the Finance Minister had said in the House that this new bill will be brought to simplify the tax system.
The government announced in the budget
The new tax regime was implemented by the government under this Income Tax Act of 1961. The government had said in the budget of 2024-25 that there is a need to change the income tax in the country. Now according to sources, the bill for the new income tax has been completely prepared by the government on the recommendation of the committee. In such a situation, when the new Income Tax Act is passed, this law will replace the Income Tax Act of 1961.
The need of the new era will be taken care of
If government sources are to be believed, this new Income Tax Act is being made according to the needs of the 21st century. In this era of technology, the taxpayer has to do many things himself. In such a situation, there will be such a change in this income tax for the people that the common man can understand it well. This is an attempt to make the system so simple that people do not have any problem in it.
Income tax bill will be halved!
Along with this, the simplification of this bill can be understood in such a way that there are about 6 lakh words in the old Income Tax Act which will be reduced to about 3 lakh in this new bill and it will also be easy for taxpayers to understand. If sources are to be believed, the government is also working on simplifying the language of the new Income Tax. Actually, in the current Income Tax rule, the interpretation of something is different in one quote and different in the other. That is, this law has become completely like a khichdi. According to sources, every time something or the other was added to the current basic law of Income Tax. In this way, it was changed hundreds of times. In such a situation, now a new Income Tax law was needed for the country.
The law came into force on 1 April 1962
The Indian Parliament passed the Income Tax Act, which came into force on 1 April 1962. Since then, new things were being added to this law by amending it again and again. Which had become very complicated in many ways. Now, as part of the process of its simplification, the government felt the need to make this new law so that people can understand it very easily. If sources are to be believed, the draft prepared for this will be quite simple and easy for people to understand.
These rules will change after the new law
At the same time, if sources are to be believed, people are also afraid that after the implementation of the new income tax rules, the government will not end the old tax regime. But, according to sources, no such thinking has come out from the government yet. The government also believes that about 78 percent of taxpayers have shifted to the new tax regime so far. Still, sources say that the government is not in the mood to do much tampering with the old tax regime.
On the other hand, if sources are to be believed, the government is also trying to reduce people’s dependence on government schemes for investment so that people invest more in other places and the general public can get more benefits from this. In such a situation, options ranging from mutual funds, SIP to stock market can be beneficial for the people. Along with this, according to sources, the government’s intention behind giving such a big relief to the taxpayer is to increase purchasing in the market and this changes the pace of the market and this will also directly benefit the health of the economy.
