FM Confirms New Income Tax Bill to Be Taken Up in Monsoon Session
FM confirmed that a new income tax bill will be introduced during the monsoon session, calling it “a new income tax bill” and “not brought through the finance bill.”
Union Finance Minister Nirmala Sitharaman confirmed on Tuesday during a discussion in the Lok Sabha that the government will bring a new Income Tax Bill in the upcoming Monsoon Session of Parliament. While answering questions from members during the current Budget Session, Sitharaman explained that this new bill will not be part of the current Finance Bill but will be a separate law....
Union Finance Minister Nirmala Sitharaman confirmed on Tuesday during a discussion in the Lok Sabha that the government will bring a new Income Tax Bill in the upcoming Monsoon Session of Parliament.
While answering questions from members during the current Budget Session, Sitharaman explained that this new bill will not be part of the current Finance Bill but will be a separate law. She said, “It is not brought through the Finance Bill. It is a new Income Tax Bill.”She added, “Hopefully, we’ll have it taken up for discussion in this House during the Monsoon Session.”
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Key Tax Changes Announced
Even though the new Income Tax Bill will be discussed later, Sitharaman shared several direct tax changes in the current Finance Bill. These are meant to make it easier for people to follow tax rules and reduce their burden:
- TDS/TCS Relief: The limits for tax deduction at source (TDS) and tax collection at source (TCS) have been raised, so deductions will now start at higher income levels. Also, the TCS requirement on the sale of goods under Section 206C(1H) is planned to be removed.
- Help for Middle-Class Homeowners: Taxpayers can now claim two self-occupied properties without needing to submit extra paperwork. Sitharaman said, “We take it as you stated,” referring to taxpayer declarations. This change will make things easier for many middle-class families.
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- Transfer Pricing Changes: A new system will be introduced for setting fair prices in international business deals, covering three-year blocks. This should reduce the need for yearly checks and make compliance easier.
- Wider Safe Harbour Rules: The safe harbour rules, which help reduce disputes in international taxation, will now apply to more situations. This gives businesses more clarity and fewer reporting requirements.
- Support for Electronics Industry: The rules for non-resident companies working with Indian electronics manufacturers have been relaxed. Since electronics supply chains work on tight schedules, the government wants to make it easier for these businesses to operate.
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Customs Duty Changes
Sitharaman also said that customs duties have been adjusted after talking to different industry groups. These changes aim to support growth and are meant to be practical.
All these updates are part of the government’s bigger plan to modernize India’s tax system, attract investment, and make tax rules easier and more predictable. The new Income Tax Bill could become one of the biggest changes in India’s tax laws in many years and is expected to spark a lot of discussion in the Monsoon Session.
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