The Union Cabinet is expected to approve the much-anticipated Income Tax Bill tomorrow, setting the stage for its introduction in Parliament next week. Announced by Finance Minister Nirmala Sitharaman during the Union Budget 2025-26, the bill aims to modernize and simplify India’s direct tax system. Often referred to as the Direct Tax Code, the proposed legislation seeks to cut the complexity of the current tax framework in half, making it more transparent and easier to navigate. Emphasizing a “trust first, scrutinize later” approach, it aims to create a taxpayer-friendly environment by reducing compliance burdens and encouraging voluntary tax adherence. By streamlining tax laws and introducing clearer regulations, the bill is expected to enhance efficiency, minimize disputes, and reinforce taxpayer confidence in the system. If approved, this landmark reform could redefine India’s tax landscape, promoting ease of compliance and economic growth.
