Finance Ministry Unlikely to Introduce New Income Tax Bill in Budget 2025
The key concept of initiative is to make the Income Tax Act more comprehensible and accessible for taxpayers
As per the latest reports, the Finance Ministry is unlikely to introduce the new Income-Tax Bill during the Budget 2025 session of Parliament. Finance Minister Nirmala Sitharaman announced a review of the Income-Tax Act during her budget presentation in July 2024. As per the report by Business Standard, the internal committee led by Chief Income-Tax Commissioner V.K. Gupta, reviewed...
As per the latest reports, the Finance Ministry is unlikely to introduce the new Income-Tax Bill during the Budget 2025 session of Parliament. Finance Minister Nirmala Sitharaman announced a review of the Income-Tax Act during her budget presentation in July 2024.
As per the report by Business Standard, the internal committee led by Chief Income-Tax Commissioner V.K. Gupta, reviewed the existing Income-Tax Act and was expected to submit its report before the Budget is presented on February 1, 2025.
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The officials held that the Bill is unlikely to be enacted immediately during the Budget session. As per V K Gupta committee report, the legislation will be drafted with the help of the law ministry. After the draft Bill is ready, it will be referred to the Standing Committee on Finance for further scrutiny and feedback.
The six-month timeline ends in January 2025 and it was expected that the amended Income Tax Act could be brought in the Budget session of Parliament.
The review committee who were in charge of examining the Income-Tax Act is not expected to propose changes to tax rates. Instead, its focus remains on simplifying the legislation to make it more concise, user-friendly, and accessible, according to a recent report. It was reported that the committee aims to complete its review by submitting all 23 reports, each addressing a chapter of the 1961 Income-Tax Act.
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The Income-Tax Act of 1961 has its origins in 1922 and, in its current form, contains 298 sections and 23 chapters, along with various provisions. The committee has submitted eight reports to the Central Board of Direct Taxes (CBDT), while sub-committees are working intensively to finalise the remaining drafts.
As per the report the review was by over 80 officials involved in the process, the committee has also launched an online portal to gather public suggestions. The key concept of initiative is to make the Income Tax Act more comprehensible and accessible for taxpayers.
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