Cabinet clears revised Income Tax Bill; to be tabled in Lok Sabha on Monday
The revised Bill will be tabled in the Lok Sabha on Monday, the people quoted earlier said. It incorporates most of the recommendations of a select committee of Parliament, chaired by Bharatiya Janata Party MP Baijayant Panda, that reviewed the draft of the proposed law, they said, speaking on the condition of anonymity.
Once passed, it will replace the Income-Tax Act, 1961.
The previous version of the Bill introduced in the Lok Sabha in the Budget session of Parliament on 13 February has been formally withdrawn, they added.
'To avoid confusion by multiple versions of the Bill and to provide a clear and updated version with all changes incorporated, the new version of the Income Tax Bill will be introduced for the consideration of the House on Monday,' said one of the persons quoted above.
Mint had reported on Thursday that the cabinet was set to consider the revised bill on Friday.
Queries emailed to the finance ministry on Thursday remained unanswered at the time of publishing.
The select committee scanned through the earlier draft to ensure that the simplification exercise does not lead to wordings that are open to different interpretations. The proposed new tax law will be significantly smaller in volume as it removes redundant and outdated provisions and uses more direct language. The idea is to make it more user-friendly for taxpayers and professionals and also to avoid any disputes arising from differences in interpretation.
In an interview published by Mint on 22 July, Panda had explained that the bill was not meant to make substantive changes to the law and the committee's mandate was to vet it for simplification.
The proposed new direct tax law is expected to bring more structural cohesion to several taxation concepts spread across different sections.
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