Government Unveils Major Tax Reforms in Upcoming Income Tax Bill

Finance Minister Nirmala Sitharaman announced a new Income Tax bill, embodying the concept of 'trust first, scrutinise later.' The bill aims to simplify the income tax law, fostering clarity and reducing disputes. It follows a decade of tax reforms and an upcoming increase in FDI for the insurance sector.

Finance Minister Nirmala Sitharaman revealed plans for a new Income Tax bill, set to promote a 'trust first, scrutinise later' approach in the coming week. The move seeks to streamline the existing Income Tax law, making it more accessible and reducing legal disputes for taxpayers.

Sitharaman also announced a significant reform in the insurance sector with the government increasing the Foreign Direct Investment (FDI) cap to 100% from 74%. This marks a continued effort over the past decade to ease taxpayer convenience through methods like faceless assessment.

Additionally, the government aims to upgrade air cargo warehousing for high-value perishable horticulture items and expand India Post Payments Bank services in rural areas, as part of the 2025-26 budget measures.