Cabinet Clears Income Tax Bill, Will Be Introduced In Parliament On This Day!

Cabinet Clears Income Tax Bill

The new income tax bill received approval from the Union Cabinet on Friday as sources informed PTI. Next week the legislation gets introduced in Parliament before the Standing Committee on Finance receives it, according to the report.

Under the new bill officials aim to develop direct tax understanding while preventing additional financial responsibilities from taking effect. There will be no provisions and explanations together with long sentences in the new legislation.

In the ongoing session of Parliament, Finance Minister Nirmala Sitharaman revealed that the new tax bill will be presented before lawmakers. The July 2024 Budget introduced by the minister contained a complete examination of the Income-tax Act 1961 for review. A CBDT internal committee oversees the review process to make the Act concise and easy to understand so disputes and litigations decrease and taxpayers receive greater tax certainty.

Additional to these specialized sub-committees 22 have been formed to assess different aspects of the Income Tax Act, according to the report. The public received invitations to share input through four distinct categories including language, simplification and litigation reduction as well as compliance reductions and obsolete provisions identification. The income tax section obtained 6,500 stakeholder proposals regarding the assessment of the Income Tax Act.

“The middle class provide strengths to the economy. In recognition of their contribution, we have periodically reduced the tax burdens. I am now happy to announce that there will be no income tax up to an income of ₹12 lakhs,” the minister said.

Individuals earning up to ₹12.75 lakh in a year will not have to pay any taxes after she raised the exemption threshold from ₹7 lakh. She also altered tax slabs for people earning above this threshold to help save up to ₹1.1 lakh in taxes for those with income up to ₹25 lakh in a year.