The Parliament will take up the discussion on the New Income Tax Bill, which was introduced in the Lok Sabha in February, in the monsoon session, Finance Minister Nirmala Sitharaman said on Tuesday.
The bill introduces the concept of the tax year, merging the current terms of the assessment year and the previous year. It also codifies a comprehensive framework for faceless assessments under Clause 273.
"This Budget session has introduced provisions and certain reformatory steps through the Finance Bill, which we hope will be taken up for discussion in this House during the monsoon session," she said in the lower house during a discussion on the Finance Bill.
Sitharaman emphasised the government's efforts to cater to India's aspirations by rationalising the tax system to benefit taxpayers.
To promote ease of doing business, the Finance Bill rationalises various provisions, including reduced thresholds on tax-deducted-at-source and tax-collected-at-source provisions, and expanded scope of safe-harbour rules. The bill proposes benefits for second self-occupied properties and a scheme to determine arm's length prices in international transactions for three years, she said.
Startups will also benefit from the proposed extension of the incorporation period by five years, according to Sitharaman.
The government has proposed removing the 6% equalisation levy on online advertising as part of the amendments to the Finance Bill 2025, Sitharaman said. NDTV Profit reported about the decision on Monday.
Sitharaman reiterated the rationalisation of custom duty structures and cuts announced in her budget speech aimed to boost domestic production.
"Rationalisation of customs will also benefit importers," she said.
The second leg of the budget session is due to end on April 4.
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