Cabinet okays bill to replace I-T Act, likely to be tabled soon

Experts said they are looking forward to a more concise tax law that is bereft of redundant provisions

- Subhash Narayan & Gireesh Chandra Prasad

The Union cabinet on Friday approved a bill to replace the more than six-decade-old Income Tax Act, 1961, with a new, simpler and easy-to-understand law, as part of the government's regulatory reforms.

The Income Tax Bill is likely to be tabled in Parliament shortly, and may be referred to a parliamentary committee for further discussions, according to two persons in the know.

The new Income Tax Bill is a key element of the regulatory reforms announced by finance minister Nirmala Sitharaman in her budget speech on 1 February, which outlined reforms meant to add momentum to India's economic development. There was, however, no official word on this decision.