Concept behind less complicated, new revenue tax invoice? So you may take care of taxes by yourself – Firstpost

Finance Minister Nirmala Sitharaman has mentioned that the brand new revenue tax invoice, which can be introduced in Parliament subsequent week, will purpose to make the IT Act related to the twenty first century, with the main target being on encouraging residents to handle their revenue tax on their very own.

In an interview to Instances of India a day after presenting the Union Funds 2025, Sitharaman mentioned, “It will likely be a complete method to creating it related to the twenty first century, to an period which is technology-driven, the place the taxpayer is most frequently doing it himself. For a citizen to have the ability to take care of the revenue tax on his personal, the system ought to be easy sufficient for him to deal with. That is what we’re working in the direction of.”

Sitharaman emphasised that the initiative additionally goals to foster belief between the tax division and taxpayers, outlining a number of measures launched within the Funds to assist this aim.

Sitharaman mentioned that the tax aid unveiled by her was meant to honour the sincere taxpayer. She mentioned it was not smart to maintain loading the slim tax base with taxes.

“However it’s also equally upon us to widen the bottom and hold newer folks coming in,” she was quoted as saying.

The finance minster mentioned the government would implement the eighth Pay Fee from Jan 1, 2026.

“The suggestions can be applied a minimum of for the core wage,” Instances of India quoted her as saying.

She additionally mentioned macroeconomic fundamentals stay sturdy, which is able to assist be certain that progress continues and insulate the nation in opposition to international uncertainties.

The proposed new revenue tax legislation stems from the sooner Funds announcement for 2024-25. In July 2024, Sitharaman had initiated a complete evaluation of the Earnings Tax Act of 1961, with the aim of finishing it inside six months.

Throughout her FY26 Funds speech, Sitharaman highlighted the federal government’s implementation of assorted reforms over the previous decade to boost taxpayer comfort, resembling faceless assessments, a taxpayer constitution, quicker processing of returns, practically 99 per cent of returns being self-assessed, and the Vivad se Vishwas scheme.

In July, she defined that the aim of the evaluation is to make the Act extra concise, clear, and user-friendly, which is predicted to minimise disputes and litigation whereas offering tax certainty to taxpayers.

In October of the earlier yr, the Earnings Tax division introduced the institution of an inside committee to evaluation the Earnings Tax Act, inviting public enter on 4 key areas: simplifying the language, decreasing litigation, minimising compliance burdens, and eliminating outdated provisions.

With inputs from businesses