The new Income Tax Bill will be introduced in the Lok Sabha on Thursday, sources said. They said the government is keen on detailed consultations on the bill and it is likely to be sent to a Select Committee for further examination. The Union Cabinet last week cleared the new Income Tax bill. Sitharaman had indicated earlier that the bill will be sent to a parliamentary committee for scrutiny.
“The process is the committee gives its recommendations, it comes back, and then the government, through the Cabinet, takes a call whether these amendments are to be taken in,” she had said. In July 2024 Budget, the government had proposed a comprehensive review of the Income-tax Act, 1961. The purpose was to make the Act concise and lucid and reduce disputes and litigation.
Sitharaman had said in her budget speech on February 1 that the bill will be soon introduced in Parliament. “Over the past 10 years, our Government has implemented several reforms for convenience of tax payers, such as (1) faceless assessment, (2) taxpayers charter, (3) faster returns, (4) almost 99 per cent returns being on selfassessment, and (5) Vivad se Vishwas scheme. Continuing these efforts, I reaffirm the commitment of the tax department to “trust first, scrutinize later. I also propose to introduce the new income-tax bill next week,” she said in the budget speech.
What to expect
The New Income Tax Bill, 2025, will introduce the concept of the tax year to resolve problems related to the current terms of the assessment year and the previous year. Typically, a lot of taxpayers get confused between the assessment year and financial year while paying taxes, The Economic Times reported.
Taxpayers may note that the New Income Tax Bill, 2025, will not affect the financial year. As usual, the financial year will begin on April 1, ending on March 31 the following year.
The new bill is likely to change sections under the new bill. In the present scenario, Section 139 covers income tax return filing and the new tax regime is provided for under Section 115BAC.
(With inputs from ANI)
Link to article –
New Income Tax Bill likely to be introduced in parliament today; here’s what to expect
