New Income Tax Law to Simplify Existing Framework

The government plans to introduce a new income tax bill during the Budget session of Parliament to streamline the current law, reducing its volume by 60%. Finance Minister Nirmala Sitharaman announced a comprehensive review of the 1961 Income Tax Act, aiming to make it concise and easily understandable.

The upcoming Budget session of Parliament is set to witness the introduction of a new income tax bill, aiming to simplify existing regulations. This initiative seeks to slash the complexity of the current I-T law, aiming for a reduction in pages by approximately 60%.

Finance Minister Nirmala Sitharaman revealed plans for a thorough overhaul of the six-decade-old Income Tax Act, 1961. This revision is expected to conclude in six months, as stated in her July Budget address.

A new income tax law, distinct from an amendment to the current act, is anticipated to be presented in the latter half of the session. The draft is under review by the law ministry and is slated for introduction between January 31 and April 4.

(With inputs from agencies.)