New Delhi: Will the Income Tax Bill, which was approved by the Cabinet on Friday, have any rate surprises? If reports are to be believed, it won’t. Rather, it is a major exercise to make the income tax rules simpler and easily comprehensible. According to reports, it will be simplified to an extent that even a common salaried taxpayer can figure our what are his tax liabilities.
“You can expect simplicity, consistency and direct speech. This law will be written quite differently. What we are saying is that a law which has been amended more than 4,000 times, and has a lot of redundant provisions, can have a simpler rules, which even a salaried taxpayer can read and figure out what are his tax liabilities,” revenue secretary Tuhin Kanta Pandey told The New Indian Express.
In the same interview, Pandey clarified that worldwide there was a new way of writing laws in more direct and clearer manner. Pandey clarified that there are no surprises in terms of tax structure, which he says would not be any different from what the finance minister has already announced, The New Indian Express report claimed.
Earlier, Finance minister Nirmala Sitharaman had announced major relief to taxpayers in the recent Budget. She has increased the income threshold from Rs 7 lakh to Rs 12 lakh and changed the income tax slabs that will lead to a substantial reduction in tax burden under the new tax regime.
Sitharaman on Saturday announced that the New Income Tax bill will be presented in the Parliament next week. Thereafter, it will be reviewed by a parliamentary committee.
She added that the Reserve Bank of India (RBI) and the government will collaborate closely on various economic matters, including inflation and growth.
