The Cabinet has approved the bill, and after it is introduced in Parliament, it may be forwarded to the standing committee on finance.The revised income tax measure is scheduled to be introduced in Parliament next week after receiving Cabinet approval. According to Business Standard, which quoted an official without identifying them, the revised measure is anticipated to cut the number of sections by 25–30% in order to simplify and condense the law.
It goes on to say that the word count has been cut in half and that even the provisos and explanations have been eliminated.
No overbearing authority
Additionally, the official affirmed that no excessive power nor excessive delegation exist.
Parliament still has the authority to determine income levels and set rates. According to the official, the primary concept of taxation is that every rupee must be collected only after parliamentary permission.
Another official is quoted in the report as stating that clarity, simplicity of comprehension, and simplification were the main priorities.
It eliminates repetition and difficult-to-understand explanations and makes use of clear language, the active voice, and shorter phrases. To maintain openness and get public input, the income tax administration wants the bill to be put out for public consultation.
According to the official, stakeholder consultation lowers the likelihood of future uncertainties or legal conflicts, resulting in a more seamless transition to the new tax regime.
Standing Committee
Finance Minister Nirmala Sitharaman stated in a media interview that the Bill will first be introduced in Parliament before being forwarded to the finance standing committee. After that, the committee would begin the consultation process.
The measure seeks to address the problems resulting from interpretations made by different legal courts.
It is anticipated that the new measure will refrain from cross-referencing, which is the practice of referring to several clauses in order to understand what is said in one of them.
The new income tax bill will be sent to a standing committee, Ms. Sitharaman had implied in a post-Budget interview with Mint.
"Normally, standing committees go through this (kind of bill)," she explained.
She added in the same interview that the new law will be at least half as large and more simple.
"Compared to the previous version, this will be easier to understand, easier to comply with, and use less words to express the same ideas. Additionally, a number of sums that we utilized as a ceiling or benchmark are all being examined to see if they are pertinent.
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