Revamping I-T Act: Sitharaman to introduce revised bill half the length of current code for greater simplicity

Finance minister Nirmala Sitharaman will introduce a new income tax bill in parliament next week that will be half as long as the current code as part of the Centre's effort to simplify the six-decade-old Income Tax Act of 1961 with an aim toward strengthening tax certainty and reducing disputes.

She said the new I-T bill will carry forward the spirit of "nyaya" (justice) based on the concept of "trust first, scrutinise later," signalling continuity with tax reforms.

"The new bill will be clear and direct in text with close to half of the present law, in terms of both chapters and words," Sitharaman said. "It will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation."


"I hope it (the bill) will get passed without much difficulty," the FM said. The new income tax bill will go to the standing committee of parliament, she added.

"Finance minister's announcement of the new direct tax bill being presented next week is a fulfilment of last year's promise for a simplified tax code to enhance certainty, where tax would play a key role in improving the ease of doing business in India," said Sameer Gupta, national tax leader, EY India.