New Income Tax Bill likely to get cabinet nod today

The new Income Tax Bill, which is set to replace the six-decade old Income Tax Act, is likely to be get cabinet nod today, said PTI sources.

The new bill will not have long sentences and there would be provisos and explanations, added Pandey.

The bill, which was announced by Finance Minister Nirmala Sitharaman in her Budget speech, will also incorporate the changes made in income tax rates, slabs and in TDS provisions made in the Budget for 2025-26.


"When you see next week a new Income Tax Bill, you will see a very different Bill. The way we write laws is undergoing a change... You will see very less of those long sentences you will not see probably the proviso, explanations," Pandey said at a PHD Chambers event on Thursday.

Pandey said the new bill will not put any new taxes, or any new burden.

"We are also not changing policy in a big way. We do not want to create any unstable situation," Pandey added.

The new law would be simple. "Laws are not supposed to be meant for only legal professionals. It is for citizens to understand," Pandey said.

The new income tax bill, which will replace the Income Tax Act, 1961, has been drafted within 6 months and efforts have been made to simplify the language to help taxpayers understand. Additionally, the new law has been made concise, removing old provisions thereby making it less bulky.