New Income Tax Bill to Be Introduced in Parliament: Key Highlights:

New Income Tax Bill to Be Introduced in Parliament: Key Highlights The new income tax bill is likely to come to Parliament today, after getting the approval from the Union Cabinet on February 7. The new income tax bill seeks to reduce the burden on the middle class by simplifying the filing process. Earlier sources had claimed the new Bill may focus largely on expanding the tax base and making it sound attractive. But such a scenario not very plausible after all; the raising of the exemption limit to Rs. 12 lakh as made in Union Budget has helped with the shrinkage of tax bases. The Income Tax Act of 1961 is set to be replaced by a new law, this time designed with the economic and technological needs of the 21st century. A review committee was formed that analyzed the former tax system, recommending a much more efficient and streamlined framework for taxation. Taking into account those recommendations, this new bill is drafted to eliminate complexities and modernize the tax structure.. With increasing digitalization, online platforms are made available for taxpayers so that they can conduct and manage their processes allowing them to manage tax-related processes more independently. This new bill is being introduced to align with this trend making the system more lucid and user-friendly. It endeavors to ensure that the tax regulations can be easily understood and complied with by the individuals through digital means. In addition to simplification, the government plans to stimulate private consumption further by providing a considerable amount of relief in taxes. It is presumed that this will increase disposable income, hence adding to total economic growth and stability. As the Income Tax Bill progresses through Parliament, significant changes are expected to emerge within taxpayer benefits along with making this process more efficient and accessible.