Amid uproar over Waqf report, Sitharaman tables new Earnings Tax Invoice in Parliament

Union Finance Minister Nirmala Sitharaman on Thursday tabled the brand new Earnings Tax Invoice within the parliament.

The brand new Earnings Tax invoice is supposed to simplify the direct taxation regime and substitute the Earnings Tax Act of 1961. It was cleared by the Union Cupboard final week.

Beforehand, the CNN-Information 18 had reported that the invoice could possibly be referred to the Parliamentary Standing Committee on Finance for broader session.

In her Funds speech, Sitharaman mentioned that she would introduce a brand new revenue tax invoice as a affirmation of the “dedication of the tax division to ’belief first, scrutinise later’”. The brand new revenue tax invoice has been pitched as a part of the federal government’s outreach to the center class that contains tax breaks and simplification of tax-collection and submitting.

“The brand new invoice will likely be clear and direct in textual content with near half of the current legislation, when it comes to each chapters and phrases. It will likely be easy to grasp for taxpayers and tax administration, resulting in tax certainty and diminished litigation,” mentioned Sitharaman.

As soon as handed by the parliament, the invoice will come into impact on April 1, 2026, based on CNBC-TV18.

Sources had been reported as alluding that the brand new Earnings Tax Invoice goals to usher in ease of compliance as new simplified guidelines will assist scale back compliance processes by streamlining paperwork, integrating digital platforms, and simplifying return submitting mechanisms.

Among the many modifications, the invoice proposes to exchange the ‘evaluation yr’ with easier ’tax yr’, with tax yr referring to the 12-month interval of the monetary yr beginning April 1, as per the report, which added that the time period ‘earlier yr’ will likely be changed by ‘monetary yr’.