YEARS
Finance Minister Nirmala Sitharaman during her budget speech in July 2024 had promised a comprehensive reassessment within six months to resolve any existing complexities and conflicts.
Finance Minister Nirmala Sitharaman may introduce a bill for a new direct tax law during the upcoming budget session. The focus of this proposed law will be on simplifying the existing provisions, eliminating unnecessary provisions and making the language more accessible to the general public. This amendment aims to simplify the law, ensure that it is clearer and easier to understand, and reduce its volume by a substantial 60%.
Finance Minister Nirmala Sitharaman during her budget speech in July 2024 had promised a comprehensive reassessment within six months to resolve any existing complexities and conflicts. According to a report, a committee in charge of amending the law is considering whether the replacement of the 63-year-old Income Tax Act should be divided into two or three parts. While the government had initially planned to release the draft legislation for public feedback, it has now decided to take a more assertive approach amid criticism of the complex tax laws.
The bill will be introduced first, allowing adjustments based on input from taxpayers and experts, before being finalized. The proposed law will be an entirely new framework, as opposed to a mere amendment to the existing Act. A source has been quoted as saying that the new income tax law will be introduced in the budget session of Parliament. This will be a new law and not an amendment to the existing Act. Currently, the draft law is being examined by the Law Ministry and is likely to be brought in Parliament in the second half of the budget session.
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