New Income Tax Bill Approved – The Union Cabinet cleared a new income tax bill to replace the 60-year-old Income Tax Act, aiming for simplicity and clarity.
By Aniket chakraborty
Feb 8, 2025
No New Taxes – The bill focuses on simplifying tax laws, removing ambiguities, and easing compliance, without introducing new taxes.
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Tax Relief for Middle Class – Individuals earning up to ₹12 lakh annually will pay zero income tax, as announced in Budget 2025.
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Reduced Litigation – The bill aims to cut down on tax disputes and litigation by making laws clearer and more predictable.
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Simplified Language – Legal jargon will be reduced, making tax provisions easier for ordinary taxpayers to understand.
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Public Consultation – The bill will be referred to the Standing Committee for stakeholder feedback, ensuring transparency.
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Focus on Ease of Compliance – The government’s “trust first, scrutinise later” approach will continue, promoting taxpayer convenience.
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Reduction in Sections – The bill will cut the number of sections by 25-30%, making the law more concise and user-friendly.
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Legacy Issues Addressed – The bill aims to resolve retrospective taxation and complex exemptions, reducing legal disputes.
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Political Push for Reform – Over 100 officers worked on the bill, driven by a strong political mandate to simplify tax laws for the common citizen.