Budget 2025: FM Sitharaman May Propose New Income Tax Bill — Profit Exclusive

The Government is likely to propose the new Income-tax Bill in the upcoming Union Budget 2025. The draft Bill envisages to replace the decades old Income-tax Act, 1961, people in the know told NDTV Profit. The bill, however, will be implemented later in the year after consultation with all stakeholders. “Government may invite stakeholders comments on the Draft Bill and accordingly some tweaks could be made in the final version,” one person said. He added that the intent is to simplify the language of the direct tax laws and make it concise, lucid and taxpayer-friendly. The draft bill may also find a mention in the Finance Minister Nirmala Sitharaman Speech on February 1, they said. A comprehensive review of direct taxes was promised by the finance minister in last year's budget..Government Must Look At Easing ESOP Tax For Startups In Budget 2025: Mobikwik's Upasna Taku.The CBDT-led internal panel tasked to review the Income tax Act is expected to submit its review report this week. The report will be also vetted by the law ministry, sources said.The panel formed 22 sub-committees to review the direct tax laws and received over 6500 suggestions. Notably, the Government has made at least three attempts to rewrite the Income Tax Act since 2010. During the first two terms of the Modi government, a task force was formed, and even a direct tax code was proposed, but the report was never made public, and suggestions were not taken on board. .Budget 2025: Capex Growth Could Fall Short Of Target, Says Jefferies.As the direct tax review exercise is almost near completion, the draft report may suggest eliminating all redundant sections and provisions. For instance, many provisions before assessment year 2012-13 could be declared redundant. The panel learnt to have identified several such redundant provisions in area of Exemptions and deductions and that could be eliminated. Besides, time-expired provisions will be also removed. However the proposed changes may not affect the assessment of total income arising out of past investments even if no new investments can be made under those provisions.“The review is being conducted in a way to eliminate all redundant sections, but with certain broad exceptions, said sources. One of these related to income in the current or subsequent years arising from past investments. The other two pertain to litigation, notices, and search. .Budget 2025 Expectations: Focus To Be On Capex, Consumption And Jobs, Says UBS.According to officials in the know, any provision that may have an impact on the determination of total income in pending assessment proceedings will not be done away with. It will be assumed that proceedings related to assessment year 2012-13 onwards may still be pending in regular course. The other provisions that will be spared from the review will be those with impact on initiation of proceedings in current year related to assessment year 2014-15 or later.The draft may cut voluminous chapters of the existing Act by 50-60%. Besides, redressal systems could see a facelift in the draft bill..Five Key Expectations From The Union Budget 2025-26 — Motilal Oswal

Budget 2025: FM Sitharaman May Propose New Income Tax Bill — Profit Exclusive

As the direct tax review exercise is almost near completion, the draft report may suggest eliminating all redundant sections and provisions.

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Budget 2025: FM Sitharaman May Propose New Income Tax Bill — Profit Exclusive

As the direct tax review exercise is almost near completion, the draft report may suggest eliminating all redundant sections and provisions.

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