New earnings tax invoice to be half the present one and less complicated, says Sitharaman – Firstpost

Finance Minister Nirmala Sitharaman on Saturday mentioned that the brand new earnings tax invoice may have half of the current legal guidelines, and might be easy for taxpayers and tax directors to scale back litigations.

The brand new earnings tax invoice – a direct tax code meant to simplify compliance for particular person taxpayers – might be launched subsequent week, she added as she introduced the Union Finances 2025.

Discussions a couple of new direct tax code arose when Sitharaman introduced the complete 2024/25 funds in July.

At the moment, she mentioned the goal was to simplify present earnings tax legal guidelines for higher readability and to scale back the size of the Earnings Tax Act of 1961 by a formidable 60 per cent.

Sitharaman on Saturday made historical past as she introduced a file eighth consecutive funds, which comes within the backdrop of slowdown in financial system and demand for tax cuts for center class.

This may take Sitharaman nearer to the file of 10 budgets that had been introduced by former Prime Minister Morarji Desai over totally different time intervals.

Desai has introduced a complete of 6 budgets throughout his tenure as finance minister from 1959 to 1964, and 4 budgets between 1967 and 1969.

With inputs from companies