New Income Tax Bill Set for Lok Sabha Introduction

The new Income Tax Bill is set to be introduced in the Lok Sabha, aiming for in-depth consultation via a Select Committee. Cleared by the Union Cabinet, the initiative follows a call for a comprehensive review during the July 2024 Budget, reflecting the government's reform agenda.

The new Income Tax Bill is poised to be introduced in the Lok Sabha on Thursday, aiming to undergo detailed consultations, according to insider sources. The government hopes to send the bill to a Select Committee for a thorough examination.

Last week, the Union Cabinet gave its nod to the new Income Tax Bill, with Finance Minister Nirmala Sitharaman earlier indicating that the legislation will be referred to a parliamentary committee for scrutiny. She outlined that the process involves the committee making recommendations, after which the government decides on any amendments via the Cabinet.

In the July 2024 Budget, the government announced plans for a comprehensive review of the Income-tax Act, 1961, with objectives to streamline the Act and minimize legal disputes. Sitharaman had communicated in her budget speech that the bill's introduction in Parliament was imminent.

"Over the past decade, our Government has initiated several taxpayer-friendly reforms," Sitharaman noted. These include faceless assessments, a taxpayers' charter, faster returns, and a high rate of self-assessed returns, bolstered by the Vivad se Vishwas scheme. She reiterated the tax department's philosophy of 'trust first, scrutinize later,' and declared the new bill's introduction in the ensuing week during her budget speech.