the Union Cabinet approved the income tax bill. The bill is expected to be tabled in the parliament next week. As per Government officials, the bill is anticipated to cut down the number of sections by nearly one-third.
As quoted by Business Standard, the official mentioned that, “We have tried to reduce sections by 25-30 per cent to make the law simpler and more concise. We have removed proviso and explanations and have halved the word count.”
He further stated that, “There is no excessive case of delegation. Substantive power relating to quantification of income and levy of rates remain with Parliament. Every single rupee has to be collected after Parliamentary approval, this is the fundamental principle of taxation and it can never change. However, some provisions could be made more compact by shifting the procedural details into rules.”
As quoted by Business Standard, another official mentioned that, “It aims to use lucid language, active voice, and shorter sentences while eliminating redundancy and complex explanations.”
In the interview with Business Standard, Finance Minister Nirmala Sitharaman mentioned that the Bill would be sent to the Standing Committee on Finance after being tabled in the Parliament. After this the committee would start a consultation process.
As per government officials, over 100 officers drafted this new bill. The official mentioned that, Tax laws are complex and to simplify them was a monumental challenge. And if the bill generates true simplification in such a short period, the credit goes to government.
