India with Budget 2025: New Income Tax Law cleared by Cabinet, says Finance Minister

India with Budget 2025: The caller income taxation law, which volition regenerate the six-decade-old Income Tax Act, is expected to beryllium introduced successful the Lok Sabha adjacent week, according to Finance Minister Nirmala Sitharaman's connection connected Saturday. Following its instauration successful the Lok Sabha, the measure volition beryllium referred to a parliamentary lasting committee for review.

It should beryllium noted that the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the measure connected Friday.

"Yesterday, the Cabinet cleared the New Income Tax proposal, I anticipation to person it introduced successful the Lok Sabha successful the coming week. Post that it volition spell to a committee," Sitharaman said a media briefing aft addressing the post-Budget customary gathering with the cardinal committee of directors of the Reserve Bank of India (RBI).

Following the parliamentary committee's recommendations, the measure volition erstwhile much beryllium sent to the Cabinet. It volition beryllium reintroduced successful Parliament aft Cabinet approval.

"I inactive person 3 captious stages to walk through," Sitharaman said to the query regarding rollout of the caller income taxation law.

In the July 2024 Budget, Finance Minister Sitharaman had archetypal announced a broad reappraisal of the Income-Tax Act, 1961.

To oversee the review, the Central Board of Direct Taxes (CBDT) acceptable up an interior committee to marque the Act much concise, clear, and user-friendly, aiming to trim disputes and litigations portion providing greater taxation certainty for taxpayers.

Additionally, 22 specialised subcommittees person been formed to reappraisal assorted aspects of the Income Tax Act.

In effect to different query, Sitharaman explained that past week's fund announcement connected rationalising customs duties is portion of a task that has been ongoing for the past 2 years.

"So we had rationalised immoderate adjacent 2 years ago. We besides acceptable definite norms saying evergreening is not going to hap connected anti-dumping duties, which had played a large relation successful giving immoderate benignant of a extortion for India's ain manufacturing capabilities," she said.

Sitharaman added that arsenic each specified expiration day approaches, the authorities volition cautiously reappraisal it and lone successful bonzer circumstances volition duties beryllium prolonged; nonetheless, they should typically beryllium completed to forestall the extortion from becoming everlasting.

"So, this is an ongoing process. We privation to marque India a batch much investor-friendly, commercialized friendly, and astatine the aforesaid time, equilibrium it with Aatmanibhar Bharat wherever we request to person production, peculiarly done the MSMEs. We volition supply the tariff extortion arsenic required by the industry," the Finance Minister, who presented her eighth consecutive Budget connected February 1, said.

In her Budget speech, Sitharaman announced the rationalisation of the customs tariff operation for concern goods.

As portion of the broad reappraisal of the customs complaint operation announced successful the July 2024 Budget, she projected connected February 1, 2025, to region 7 tariff rates. This is successful summation to the 7 tariff rates removed successful the 2023-24 Budget.

After these adjustments, lone 8 tariff rates volition remain, including the 'zero' rate.

With the inputs from PTI