Union Cabinet Clears New Income Tax Bill:

Union Cabinet Clears New Income Tax Bill The Union Cabinet approved the new income tax bill on Friday, replacing the six-decade-old Income Tax Act, according to sources. The new bills aims to simplify direct tax law while imposing no new taxes. It will not include provisos, explanations, or lengthy sentences. Sources said, the Cabinet, chaired by Prime Minister Narendra Modi, passed the New Income Tax Bill. The new income tax bill will be submitted in Parliament next week and sent to the Standing Committee on Finance, sources said. The first leg of the present budget session concludes on February 13. The session will reopen on March 10 and continue until April 4. Finance Minister Nirmala Sitharaman indicated in Budget 2025-26 that the new tax bill would be submitted during the current session of Parliament. Nirmala Sitharaman first announced a complete revision of the Income Tax Act of 1961 in the July 2024 Budget. The CBDT established an internal committee to oversee the review and ensure that the Act is succinct, clear, and easy to comprehend, reducing disputes and litigation while providing taxpayers with better tax certainty. Furthermore, 22 expert sub-committees have been formed to examine various parts of the Income Tax Act. Public input and proposals were sought in four categories: language simplification, litigation reduction, compliance reduction, and redundant/obsolete requirements. The Income Tax Department has received 6,500 proposals from stakeholders for the review of the Income Tax Act.