The New Income Tax Act replacing the old will be introduced soon, declared FM on the celebration of the 165th year of income tax on 21st August 2024. The Union Finance Minister Nirmala Sitharaman, in the Budget 2024 has announced the scope of a new income tax act or code making it simple. CBDT Chairman Ravi Agrawal stated on Wednesday that the review and finalisation of the new Income Tax Act will be completed within six months.
The reform is intended to make the tax code more comprehensive, reduce compliance burdens, and improve clarity for taxpayers. Get a Copy of Income Tax Rules, Click here While the Finance Minister did not specify whether a completely new code or a revised act will be introduced, she indicated that significant progress is expected within six months. This may include a new or updated Income Tax Act or a portion of it, presented in simpler and more accessible language. Income tax was first introduced in India in 1860 by Sir James Wilson, who was the finance minister of pre-independent India to address the financial losses incurred by the government due to the 1857 Military Mutiny. Since then, the tax system has undergone numerous changes.
In 1886, a separate Income Tax Act was enacted, which was amended several times until 1918. A new Income Tax Act was introduced in 1918, followed by another in 1922, which remained in effect until the 1961-62 assessment year.
