Image Source : PTI Nirmala Sitharaman ahead of Budget 2025 presentation.
While presenting the Budget 2025, Union Finance Minister Nirmala Sitharaman said that the government will introduce a New Income Tax Bill next week. She added that in the new income tax bill will simplify the calculating and filing of the income tax returns. Nirmla Sitharaman stated that the new tax law will lower tax litigation and that reforms to personal tax structures would focus on the middle class.
She also stated that the new Income Tax Bill will simplify the current Income Tax law and make it comprehensible for the individual taxpayers. Moreover, the new Income Tax Bill will reduce the number of pages by about 60 per cent.
Nirmala Sitharamn further stated that the tax department’s approach of “trust first, scrutinise later,” assuring the government’s continued commitment to ease compliance. She said the new income laws will be simple to understand for taxpayers and reduce litigation.
The new income tax bill is expected to simplify the current Income Tax (I-T) law and make it easier to comprehend. Pursuant to the Budget announcement by Sitharaman for a comprehensive review of the Income-tax Act, 1961, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers.
Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act. In her Budget speech on Saturday, Sitharaman said the government will also facilitate the upgradation of air cargo warehousing for high-value perishable horticulture items as well as initiate measures to deepen and expand services of India Post payments bank in rural areas.
