New Income Tax Bill: A Simplified Path for Economic Growth

The new Income Tax Bill, aimed at simplifying India's decades-old tax framework, is set to boost MSMEs and streamline taxation. The ICAI plays a pivotal role, examining the bill's provisions. Key changes include a new tax year concept, consolidated chapters, and reduced complexity for better comprehension.

The newly introduced Income Tax Bill is set to revolutionize India's tax landscape by simplifying a tax structure that has been in place for over six decades. This move, announced by the Institute of Chartered Accountants of India (ICAI), aims to invigorate the growth of micro, small, and medium enterprises (MSMEs).

Debuted in the Lok Sabha recently, the Bill seeks to bring tax certainty by reducing litigation and misinterpretation. A significant focus is on streamlining provisions and eliminating dated references, marking a shift towards a cleaner legal framework, according to ICAI.

Prominent features include the introduction of 'tax year' and 'financial year succeeding the tax year' phrases, unifying various income provisions, and condensing duplicate sections. ICAI President Charanjot Singh Nanda emphasizes the bill's potential for empowering employment through a simplified tax regime, aligning with suggestions for modernization.

(With inputs from agencies.)