New Income Tax Bill Set to Reform India's Taxation Framework

Posted by NewAdmin on 2025-02-12 09:04:26 |

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On February 12, 2025, the Indian government is poised to introduce a comprehensive Income Tax Bill in the Lok Sabha, aiming to replace the existing Income Tax Act of 1961. This new legislation comprises 536 sections across 23 chapters and spans 622 pages, nearly half the length of the current act. One notable change is the introduction of the term 'tax year' in place of 'previous year' and 'assessment year'. Additionally, the Central Board of Direct Taxes (CBDT) will gain enhanced autonomy, enabling it to implement tax schemes and enforce digital monitoring without necessitating legislative amendments.

Political Reactions and Implications

The proposed bill has elicited varied responses from political leaders and parties. Some commend the government's initiative to modernize and simplify the tax framework, emphasizing the potential for increased efficiency and reduced compliance burdens for taxpayers. Conversely, critics express concerns regarding the expanded powers granted to the CBDT, cautioning against potential overreach and the need for adequate checks and balances. The bill's introduction is anticipated to spark extensive debates in Parliament, reflecting the broader discourse on balancing reform with regulatory oversight.

Contextual Developments in Indian Politics

This legislative move occurs amidst a backdrop of significant political activities. Notably, the ruling party has proposed the "One Nation, One Election" plan, advocating for synchronized federal and state elections every five years to reduce costs and streamline governance. While proponents highlight benefits such as decreased voter fatigue and reduced governmental disruption, opponents raise concerns about potential voter confusion and the centralization of power.