Posted on February 13, 2025, by Niftynews
In a significant development, BJP MP Tejasvi Surya expressed his support for the new Income Tax Bill on Thursday, emphasizing that the proposed legislation will modernize and simplify India Direct Taxation System. According to Surya, the bill aims to make compliance easier for Indian taxpayers by reducing litigation and eliminating complexity in the taxation process.
The Income Tax Bill, which is set to overhaul the Income Tax Act of 1961, is designed to create a more compliance-friendly framework that is easier to understand and follow. Surya, who represents South Bengaluru in the Lok Sabha, highlighted the importance of this overhaul, pointing out that India’s Direct Taxation System had not been reviewed in nearly 60 years.
Tejasvi Surya Support for the Income Tax Bill
In an exclusive interview with ANI, Surya stated that the bill would modernize the current Income Tax System, making it more logical, straightforward, and ultimately easier for citizens to comply with. He drew a comparison to the Goods and Services Tax (GST), another major reform brought about by the government. Just as GST simplified India’s indirect taxation system, the new Income Tax Bill is set to simplify India’s direct taxation system, bringing relief to millions of taxpayers.
“For almost 60 years, India Income Tax Act was not reviewed. Like many other areas where PM Narendra Modi‘s government has brought tremendous reforms, India Direct Taxation System will also be overhauled to make it modern, simple, rational, and more compliance-friendly,” said Surya.
Surya also pointed out that, from the perspective of the common man, the new Income Tax Bill would significantly ease the tax filing process and reduce the bureaucratic red tape associated with tax compliance.
Key Features of the Income Tax Bill
The Income Tax Bill is designed to overhaul the taxation framework by simplifying complex provisions and introducing mechanisms aimed at reducing tax-related disputes. Surya emphasized that one of the key goals of the new bill is to minimize litigation and resolve disputes more efficiently.
In a statement, Surya said, “We did the same for India indirect taxation system through GST… From the perspective of the common man, it has brought down the prices of goods and services, which was not the case under the earlier VAT regime. The new Income Tax Bill is going to make the lives of India’s taxpayers much easier.”
This new approach is aimed at reducing the time and resources spent on resolving tax disputes, ultimately benefiting both taxpayers and the government.
What’s Next for the Income Tax Bill?
The new Income Tax Bill will be introduced in the Lok Sabha today. While the government is keen to push the bill through, it will likely undergo detailed consultations, with a parliamentary Select Committee expected to examine the bill further. This process will allow lawmakers to review the proposed changes and recommend adjustments before it is enacted.
The Union Cabinet approved the bill last week, and Finance Minister Nirmala Sitharaman has stated that the bill could be sent to a parliamentary committee for further scrutiny. “The process is the committee gives its recommendations, it comes back, and then the government, through the Cabinet, takes a call on whether these amendments are to be taken in,” Sitharaman explained.
This overhaul of the Income Tax Act of 1961 is part of a broader government initiative to make India tax system more transparent, efficient, and in line with global standards. The new Income Tax Bill aims to simplify the tax code, reduce disputes, and make tax compliance more straightforward.
Why This Reform Matters
The new bill reflects the government’s commitment to improving India Direct Taxation System by making it more user-friendly and efficient. By cutting down on procedural complexities and disputes, the Income Tax Bill is expected to ease the burden on taxpayers, leading to improved compliance rates and smoother operations for both individuals and businesses.
