Part of the new Income Tax Bill proposes to put more money in the hands of the middle class and "greatly simplify the whole process of filing". The bill will be introduced in Parliament next week following its approval by the Union Cabinet.
The bill, which was approved in the Cabinet meeting presided over by Prime Minister Narendra Modi on Friday, will be introduced in the Parliament next week before it is sent to the Parliament's Standing Committee on Finance.
Before the Income Tax Bill was cleared by the Cabinet, people in the know said that the legislation would likely provide directions to widen the tax net, given the contraction in the tax base following the exemption limit being raised to Rs 12 lakh in the Union Budget.
The new Income Tax Act is being developed according to the needs of the 21st century to replace the existing law, which has been enforced in the country since 1961, according to sources close to the development.
The review committee was established for the new Income Tax law in the country to replace the earlier cumbersome law.
According to sources, the new Income Tax Bill has been prepared by the government on the recommendation of the committee.
In this era of technology and massive digitalisation, taxpayers can perform several things online on his or her own.
In such a scenario, there will be smooth changes in the new I-T Bill for the common man who can understand it seamlessly online. This is an attempt to make the system simple and convenient for common people.
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