The budget session will run from January 31 to April 4.
New Delhi (A.). Upcoming budget session of government parliament The government may introduce a new Income Tax Bill in the upcoming budget session of Parliament, which aims to simplify the existing IT law, make it understandable and reduce the number of pages by about 60 percent. Finance Minister Nirmala Sitharaman had announced in the July Budget a comprehensive review of the six-decade-old Income Tax Act, 1961, within six months.
According to one source, The new income tax law will be introduced in the budget session of Parliament. This will be a new law, not an amendment to the existing Act. At present, the draft law is being considered by the Law Ministry and is likely to be introduced in Parliament in the second part of the budget session. The budget session will run from January 31 to April 4. The first part (January 31-February 13) will begin with President Draupadi Murmu addressing the joint session of the Lok Sabha and the Rajya Sabha, followed by the presentation of the Economic Survey for 2024-25. The Union Budget for 2025-26 will be presented on February 1. Parliament will reconvene on March 10 and run until April 4. Pursuant to the budget announcement by Sitharaman for a comprehensive review of the Income Tax Act, 1961, the CBDT had constituted an internal committee to oversee the review and make the Act concise, clear and easy to understand, reducing its disputes and litigation. And taxpayers will get more tax certainty. In addition, 22 special sub-committees were set up to review various aspects of the Act. Suggestions and information have been invited from the public in four categories. These categories are simplification of language, reduction in litigation, reduction in compliance, and redundant/obsolete provisions. The Income Tax Department has received 6,500 suggestions from stakeholders regarding the review of the Act. Sources said the provisions and chapters will be reduced to a great extent and obsolete provisions will be removed.
Income Tax Act, 1961, which deals with the imposition of direct taxes – other than personal income tax, corporate tax, securities transaction tax, gift and wealth tax – currently has about 298 sections and 23 chapters. According to sources, “The government is trying to reduce these sections and chapters by about 60 percent. Sitharaman had said in her budget speech of July 2024 that the objective of the review is to make the Act concise, clear, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to taxpayers. This will also reduce the demand entangled in litigation. He said that it is proposed to complete it in six months.
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