Finance Minister set to Introduce New Simplified Direct Tax Bill in Budget Session

Finance Minister Nirmala Sitharaman will introduce a bill in the budget session to replace the old Income Tax Act, aiming to simplify provisions, remove outdated clauses, and use layman-friendly language.

A committee worked closely with the finance ministry and PMO to finalize the draft, which may be divided into two or three parts for clarity.

The bill, expected to be mentioned in the budget speech on February 1, it will be open for feedback after introduction, allowing taxpayers and experts to suggest changes.

Officials warn that changes in language can be a source of litigation as taxpayers would want fresh interpretations in several cases.