New Income Tax Bill may Receive Cabinet Approval Tomorrow: Here’s What You Need to Know!
Following the Union Cabinet Approval, the Bill has to be tabled in the Lok Sabha before it is brought into force
The Union Council of Ministers, a.k.a. The Union Cabinet is expected to give approval towards the new Income Tax Bill tomorrow - Friday, 7 February, 2025. Following cabinet assent, the Bill shall be introduced before the Lok Sabha some time next week before the reformed code comes into effect. Union Finance Minister Nirmala Sitharaman delivered a sweeping key-note address at the Union...
The Union Council of Ministers, a.k.a. The Union Cabinet is expected to give approval towards the new Income Tax Bill tomorrow - Friday, 7 February, 2025. Following cabinet assent, the Bill shall be introduced before the Lok Sabha some time next week before the reformed code comes into effect.
Union Finance Minister Nirmala Sitharaman delivered a sweeping key-note address at the Union Budget 2025-26 held on Saturday, 1 February, 2025 proposing numerous reforms to the financial landscape of India. One of the key inclusions came in the form of removal of effective Income Tax for persons earning up to ₹12 Lakh in a Financial Year.
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The Union Budget 2025-26, was met with plaudits from many parts of the nation who applauded the Union Government’s decision to increase expendable income in the hands of individuals to better the economy, in light of which the Finance Minister was hopeful that the new Bill would be passed without any difficulties.
Aiming to simplify the Income Tax regime, the new Bill is expected to do away with redundant and ambiguous provisions, and is poised to be almost 50% lesser in text in comparison to the in-force Income Tax Act, 1961.
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The proposed Income Tax Bill, being a Finance Bill is required to be presented in the Lok Sabha and not the Rajya Sabha; however the President is required to recommend to the House to consider the Bill and the Rajya Sabha can also submit their recommendations to amend the contents of the Bill.
The new Income Tax Bill is expected to take into account contemporary tenets of the society and economy and provide a financial language that shall benefit taxpayers, professionals and the Governmental bodies alike. One of the more interesting features in the proposed Bill is the liberty of taxpayers to combine the Assessment Year (A.Y.) and Financial Year (F.Y.) to make a tax year.
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The new bill is also slated to garner more taxpayers towards the new regime, in the Government’s vision to promote economic growth, stability and equity to an extent.
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