New Income Tax Bill: Government may present new income tax bill on 6 February, preparations for many big changes..

The draft of the new Income Tax Bill can be presented in Parliament during the budget session on February 6. NDTV PROFIT has given this exclusive information. This bill is going to bring major changes in the existing Income Tax Act. According to reports, about 3 lakh words can be removed from it, which will make it easier to understand. At present, the Income Tax Law is about 6 lakh words, which has been planned to be reduced by half.

Focus on increasing the tax scope.
According to sources, the new bill will focus on increasing the tax scope, with this change the government wants to make the tax system more effective.
Finance Minister's Announcement in Budget 2025
Finance Minister Nirmala Sitharaman (Nirmala Sitharaman on Income Tax) while presenting the Budget 2025-26 said that the government is going to bring a new Income Tax Act to Parliament next week. He said, "Just as our government replaced the Indian Judicial Code with the Indian Penal Code, this new Income Tax Bill will also carry forward the spirit of 'justice'. The new law will be clear and straightforward, with less than half the chapters and words of the existing law. It will be easy to understand for both taxpayers and the tax department, which will reduce uncertainty and disputes in tax matters."

Announced in 2024

This new Income Tax Law is being brought on the basis of the announcement made in the last budget (2024-25). In July 2024, the Finance Minister had said that a complete review of the Income Tax Act, 1961 would be completed within six months. Now the government is ready to introduce this bill. The new Income Tax Law is expected to simplify the tax system and reduce disputes.

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