New Income Tax Bill: A major change is coming to the country’s tax system. Finance Minister Nirmala Sitharaman is set to introduce a new Income Tax Bill in Parliament, replacing the old income tax law. It is reported that this new bill may be presented on the upcoming August 11th. The main objective of this new bill is to make the country’s tax system simpler, more straightforward, and tech-friendly. The current Income Tax Act dates back to 1961, which has become largely irrelevant in today’s digital economy. Therefore, this new bill is being introduced to facilitate ordinary taxpayers and curb tax evasion.
Why is this new bill necessary?
The old Income Tax Act of 1961 is extremely complex in today’s context, and many of its provisions are no longer relevant. As a result, ordinary taxpayers face many problems while filing their income tax returns and live in fear of hefty fines or notices for minor mistakes. To solve this problem, the government is bringing in a new, simple, and transparent law. Through this new bill, taxpayers will be able to calculate their taxes easily and get relief from harassment.
What changes can be expected in the new bill?
Although the full details of the bill have not yet been released, experts anticipate some major changes. The notable ones include:
- Comprehensible Language: The language of the new law will be very simple and easy for the common person to understand. This will allow taxpayers to read and understand the law themselves, reducing their dependence on professionals.
- Tech-Friendly System: The new bill will be completely technology-driven. This will make everything from tax payment to receiving refunds faster and more transparent.
- Inclusion of the Digital Economy: The current law cannot properly address many aspects of the digital economy, such as cryptocurrency or online transactions. These issues will be given importance in the new bill.
- Reduction of Tax Burden: It is expected that the tax rates in the new tax structure may be slightly reduced, which will be a great relief for the middle class and salaried individuals. Changes may also be made to the tax slabs.
- Increased Transparency: To bring transparency to the tax system, some special provisions may be added to the new law, which will reduce the arbitrariness of tax officials and prevent taxpayer harassment.
This new Income Tax Bill is set to bring a revolutionary change to the country’s economic system. It is expected that on one hand, it will benefit taxpayers, and on the other, it will also increase the government’s tax collection. Now, all eyes are on August 11, when the Finance Minister will present this historic bill in Parliament and its complete framework will be revealed to everyone. Experts believe this change will show a new direction to the country’s economy.
