New Income Tax Bill Explained: Modi Government is going to take a big decision regarding the income law. Under this, a big change can be made soon in the Income Tax Law running since 1961. Now a new Income Tax Bill is going to come, which will make the tax system easy and transparent. This will make it easier to pay tax, the language of the law will be easy and there will be a chance to avoid legal hassles.

When can the new income tax bill be implemented?

A cabinet meeting is going to be held tomorrow on 7 February at 6 pm under the chairmanship of PM Modi government. The new income tax bill is expected to be approved in the cabinet meeting. After this, the government can present this bill in Parliament on Monday i.e. 10 February.

Finance Minister Nirmala Sitharaman, while presenting the Budget 2025-26, said that the government is going to bring a new income tax law in Parliament next week. This new income tax law is being brought based on the announcement made in the last budget (2024-25). In July 2024, the Finance Minister had said that a complete review of the Income Tax Act, 1961 would be completed within six months. Now the government is ready to introduce this bill.

According to reports, if all goes well, the new tax system can be implemented from April 1. In such a situation, the biggest question now is what changes will be made in this new income tax bill. Let us understand in simple language in 10 points.

1. 60 year old law will be abolished

The Income Tax Act (Income Tax Act 1961) which is currently in force is in force since 1961. Now it will be completely abolished and a new law will be brought, which will be updated according to the current times.

2. Paying tax will be easy

The new law will be written in a few words, in simple language so that common people can understand it. The current law is written in 6 lakh words, which will be halved. That means less complexity, less confusion.

3. No change in tax rates

The tax slabs will not be changed in this bill, that means the current tax rates will remain the same. The tax system will just be made simpler and more rational.

4. Promotion of digital tax system

The process of filing taxes will be completely digitalized. This will reduce paperwork and people will be able to file their taxes easily.

5. Less legal hassles for taxpayers

The government's focus will be on reducing tax litigation. There may also be a provision to reduce punishment for many crimes.

6. Transparency in the new tax law

The government will make tax rules more clear and transparent so that there is no problem. This will cause less trouble to taxpayers and there will be no need to adopt wrong ways to save tax.

7. A new 'tax year' may be implemented

The government is considering merging the assessment year and financial year. This will make the rules of tax filing easier and streamlined.

8. Foreign investment will get a boost

The new law will also be clear for foreign companies and investors, which can increase investment in India. This will benefit the Indian economy.

9. Some new changes in the scope of tax

The government wants more and more people to join the tax system. But there will be no provision for any new tax in it.

10. Likely to be implemented from April 1, 2025

The government wants this new tax law to come into force from April 1. It can be sent to the Standing Committee first so that its provisions can be discussed.

How will you benefit from the new income tax bill?

Let us also know what benefits common people will get from this new income tax bill. The biggest relief is that paying taxes will now be easy because the new law will be written in simple language. There will be no need to get entangled in heavy legal words like before. The entire process will be digital, which will end the paperwork and you will be able to easily file taxes online. The litigation and disputes that used to go on regarding tax payments will also be reduced because the new rules will be more clear and transparent. The biggest thing is that no new tax will be imposed. The government has clearly said that the system is just being improved, and no new burden will be added. Apart from this, there is also a plan to reduce the punishment for some tax-related crimes, so that people do not have to face big punishment for small mistakes. Overall, this new bill can bring relief to taxpayers and can make the tax system in India easier, transparent, and hassle-free than before.

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