Nirmala Sitharaman Says New Income Tax Bill Likely To Be Presented In Lok Sabha Next Week

The new bill received approval from the Union Cabinet, chaired by PM Modi, on Friday. After introduction in the Upper House, it will be sent to a parliamentary standing committee for scrutiny.

Earlier in the July 2024 Budget, the finance minister first announced a detailed review of the Income Tax Act, 1961.

Source : PTI

Finance Minister Nirmala Sitharaman on Saturday said she is likely going to table the new income tax bill in the Parliament next week. The new bill received approval from the Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday.

After introduction in the Upper House, it will be sent to a parliamentary standing committee for scrutiny, reported PTI. The new bill will replace the six-decade-old I-T Act. Speaking at a media briefing after addressing the post-Budget customary meeting with the central board of directors of the Reserve Bank of India, the minister said, “Yesterday, the Cabinet cleared the New Income Tax proposal, I hope to have it introduced in the Lok Sabha in the coming week. Post that it will go to a committee.”

Regarding the rollout of the new tax bill, Sitharaman said, that the bill will go back to the Cabinet after the committee gives its recommendations on the same. “After Cabinet approval, it will again be introduced in Parliament. I still have critical stages to pass through,” the minister said.

Earlier in the July 2024 Budget, the finance minister first announced a detailed review of the Income Tax Act, 1961. Following the announcement, the Central Board of Direct Taxes set up an internal committee to supervise the review and make the Act more clear, concise, and easy to understand. Further, 22 specialised sub-committees were established to oversee the different aspects of the Income Tax Act. In the latest Budget presentation, the minister announced that she will introduce the new income tax bill in the Parliament soon.

Sitharaman also said that the government will rationalise the customs tariff structure for industrial goods. “The last week's Budget announcement on customs duty rationalisation is a work that has been on since the last two years. So we had rationalised some even two years ago. We also set certain norms saying evergreening is not going to happen on anti-dumping duties, which had played a big role in giving some kind of a protection for India's own manufacturing capabilities,” she explained.