Context:
The Union Cabinet has finally given its nod to the new Income Tax Bill, which is going to be introduced in Parliament next week. The Bill envisages the key issues of simplication, removing complexity, and creating more clarity while retaining the fundamental principles of taxation.
Key Highlights:
Reducing Complexity
- Reduced sections by 25-30% to present a concise law. Word count has been brought down to half by removing redundant provisos and explanations.
- Language has been kept lucid and shorter sentences along with active voice to improve readability.
Power Distribution & Legislative Control
- No overdelegation of power to tax authorities.
- Parliament remains in charge of the amount of income that is to be quantified and tax rates.
- Procedural features were transferred as part of rules to make law less bulky.
Transparency & Public Consultation
- The tax department shall consult with the public to get inputs from taxpayers, business and consultants.
- It ensures lesser ambiguities and legal disputes which makes transition into the new tax regime more comfortable.
Parliamentary Review Process
- The Bill will be referred to the Standing Committee on Finance by the house as soon as it is laid on the table. There will be further consultation by the committee for refinement.
