New Delhi. Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025. In the general budget, she can announce the Direct Tax Code (Direct Tax Code 2025). This new law will replace the Income Tax Act, 1961.
The purpose of bringing DTC is to simplify the provisions, remove irrelevant sections and make the language more understandable for the common people. Tax experts believe that this will simplify tax laws, reduce legal disputes and make the entire process easier for taxpayers.
The committee formed to review the Income Tax Act is deciding whether the new law will be in two parts or three. The government had earlier said that the draft law would be released for public comments, but now it has been decided that the bill will first be introduced in Parliament. After this, it can be amended based on the feedback of taxpayers and experts.
According to a report in the Times of India, officials from the Finance Ministry and the Prime Minister’s Office (PMO) have worked closely with the committee to finalise the bill over the last six to eight weeks. The Finance Minister is expected to mention the
new bill in her budget speech on February 1. However, it is not yet decided whether the bill will be introduced in the first part of the session or in the second part.
Third attempt to change the Income Tax Act
This is the third attempt when an attempt is being made to rewrite the Income Tax Act. Earlier, the Direct Tax Code Bill was introduced in 2010. After this, the Modi government formed a panel of experts, but their report was not made public and the recommendations were not implemented.
Thousands of provisions have been directed to be removed in the new law. Also, sections that have become irrelevant over the years will also be excluded. The committee has also been instructed to make the language as simple as possible so that common people can understand it easily. However, the government is not including new issues in it at the moment.
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