Hyderabad: Union Finance Minister, Nirmala Sitharaman, who presented the union budget for the financial year 2025-26 on Saturday, announced that the Centre will introduce a new income tax bill next week.
The new bill, Sithataman said, will be “clear and direct in text with close to half of the present law”. Besides, it will be simple to understand, leading to tax certainty and reduced litigation, she said.
The Finance Minister said that the Centre will introduce new Income Tax bill next week in Parliament to take forward "trust first, scrutinise later" concept.
Sitharaman further said that a scheme will be introduced for determining arm's length price of international transaction for a block period of three years, to streamline transfer pricing and to provide an alternative to yearly examination.
“Tax exemption to be provided on withdrawals made from National Savings Scheme by individuals on or after 29th August, 2024,” she said.
In another major reform move, the minister announced that the Foreign Direct Investment (FDI) in the insurance sector will be increased to 100 per cent from 74 per cent.
Presenting the Budget for 2025-26, Sitharaman said that over the past 10 years, the government has implemented several reforms for the convenience of taxpayers, including faceless assessment.
Sitharaman also mentioned the government coming out with taxpayers' charter, faster returns process and almost 99 per cent of the income returns being on self-assessment. (With inputs from PTI)
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