New Income Tax Rule: When Finance Minister Nirmala Sitharaman presented the Budget on February 1 earlier this year, the biggest announcement was about changes in income tax rules.
The government later introduced a new income tax bill, but had to withdraw it due to various reasons. Now, government sources have said that the new draft income tax law will be notified by December 31. To make the new act a law and simplify it, the government will implement all the changes through a notification.
Government sources say the new income tax structure includes around 400 rules and 180 sub-sections. The old law had over 500 rules, meaning 100 laws have been removed from the new income tax bill. The aim is to make the rules easier to implement and to simplify their compliance. “We are working fast to notify the income tax rules by December 31. Budget preparations also need to be started. So, there is still work to be done on the system,” said an official familiar with the matter.
What are the main points of the new rule?
Several changes have been made in the income tax provisions. It explains how the tax will be calculated, how and within what time the refund will be processed, how the tax exemption will be calculated, all these things are given in the new Income Tax Act. Apart from providing information about the income tax return forms, it provides general information to taxpayers and businesses on how to file their taxes. It also explains the process of filing returns and making claims.
What will change with the new rule?
After the government implements the new rule, many tax-related matters will change. Currently, after its implementation, many things can change from filing tax to its calculation. About 100 old laws are also being abolished, which can not only affect the calculation of tax, but also the tax exemptions given to people.
A prototype will be developed before implementation
An official familiar with the matter said that after the notification of the new income tax rules, the IT infrastructure will be created using data from the fourth quarter of the previous financial year, 2024-25. Income tax forms are being merged for this test. Then a prototype will be built and tested. Only if it is successful after running on the system, it will be implemented next year.
