Finance Minister Nirmala Sitharaman revealed the new income tax bill during her budget speech, which will be presented in Parliament on February 7, 2025. The bill aims to simplify the tax system, improve compliance, and reduce legal disputes for taxpayers.

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• The new income tax bill will be introduced in Parliament on February 7, 2025.
• Over the past decade, the government has implemented several reforms to ease tax processes, including faceless assessments, faster returns, and a taxpayers’ charter.
• The current Income Tax Act 1961, with 298 sections and 23 chapters, has become complex over time due to frequent amendments.
• The new bill will simplify tax compliance, make it easier to understand, and reduce disputes.
• The new bill will be concise, cutting down the current law by nearly half in terms of chapters and words.
• It will have simplified language, making it easier for taxpayers and tax authorities to comprehend and apply.
• One of its goals is to reduce legal ambiguities and streamline tax laws for greater clarity.
• The bill will align with international standards, improving tax certainty and reducing litigation.
• The new tax framework continues the government’s “trust first, scrutinize later” approach, aiming to build confidence among taxpayers.
• It is designed to meet the evolving needs of taxpayers and offer clearer guidance on tax matters.