New Delhi, February 8 – Union Finance Minister Nirmala Sitharaman announced on Saturday that a new Income Tax Bill, set to replace the six-decade-old Income Tax Act, is likely to be introduced in the Lok Sabha in the coming week.
Following its introduction in the Lower House, the bill will be referred to the Standing Committee of Parliament for an in-depth review and discussion. The Union Cabinet, chaired by Prime Minister Narendra Modi, granted its approval for the legislation on Friday.
“The Cabinet has approved the new Income Tax Bill, and I expect it to be tabled in the Lok Sabha next week. Thereafter, it will be referred to the parliamentary committee for further deliberations,” Sitharaman stated, following her address at the post-budget meeting of the Reserve Bank of India's Central Board of Directors.
Once the committee submits its recommendations, the bill will be sent back to the Cabinet for final approval before being reintroduced in Parliament for legislative passage.
On the timeline for implementation, Sitharaman remarked that the bill still has to undergo three crucial legislative stages before becoming law.
A comprehensive review of the Income Tax Act, 1961, was first announced in the Union Budget for FY 2024–25. The Central Board of Direct Taxes (CBDT) subsequently established an internal committee to streamline the Act, making it more concise, transparent, and accessible. The proposed reforms aim to reduce tax-related disputes and litigation.
Rationalization of Customs Duties
Addressing another query, the Finance Minister highlighted that the rationalization of customs duties, as outlined in the Budget, has been under consideration for the past two years.
“We initiated this process two years ago, establishing clear guidelines. While anti-dumping duties serve to safeguard India’s manufacturing sector, they are not intended to be permanent,” Sitharaman explained.
She further stated that as each duty reaches its expiry date, the government will conduct a thorough review, opting for an extension only in exceptional cases. The objective, she emphasized, is to prevent long-term protectionism while fostering a competitive business environment.
“This is an ongoing process aimed at making India more attractive for investors and businesses. Simultaneously, we are committed to the principles of Aatmanirbhar Bharat, particularly in supporting Micro, Small, and Medium Enterprises (MSMEs). Necessary protective measures will be taken through appropriate duty structures to align with industry needs,” she added.
Encouraging Private Investment
While presenting the Union Budget on February 1, Sitharaman proposed a significant rationalization of the customs duty structure for industrial goods. This included the removal of seven duty rates, adding to the seven eliminated in the previous budget, bringing the total number of remaining duty rates down to just eight.
Regarding private investment, Sitharaman expressed optimism, stating that policy measures aimed at boosting consumption, coupled with a reduction in the Reserve Bank’s policy rate, are expected to spur economic growth.
She reaffirmed that both the RBI and the government will continue working in coordination to manage inflation and sustain economic expansion.
.png)
The opinions posted here do not belong to 🔰www.indiansdaily.com. The author is solely responsible for the opinions.
As per the IT policy of the Central Government, insults against an individual, community, religion or country, defamatory and inflammatory remarks, obscene and vulgar language are punishable offenses. Legal action will be taken for such expressions of opinion.