<p>New Delhi: The new Income Tax Bill will simplify the country's six-decade old tax structure as well as help boost growth of MSMEs, chartered accountants' body ICAI said on Friday.</p>.<p>The Institute of Chartered Accountants of India (ICAI), a key stakeholder in tax matters, is also setting up a five-member group to closely examine various provisions of the bill.</p>.<p>Introduced in Lok Sabha on Thursday, the bill seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation.</p>.<p>With an intent to simplify the six-decade old tax framework, the main objective was to streamline the provisions, removing obsolete references and creating a simpler legal framework, ICAI said in a release.</p>.India's forex kitty jumps $7.654 billion to $638.261 billion.<p>It said the objectives have been sought to be achieved by replacing the concept/terminology of previous year and assessment year with 'tax year' and 'financial year succeeding the tax year', doing away with the provisos and explanations, among others.</p>.<p>ICAI President Charanjot Singh Nanda said the bill is a measure for strengthening employment generation and MSME growth as it would simplify India's tax structure and will give a boost to the Indian economy at large.</p>.<p>"The provisions relating to charitable trusts spread across different Chapters of the Income Tax Act, 1961 are being simplified and consolidated in a single chapter. All the TDS provisions are now contained in one section and presented in the form of a table.</p>.<p>"All presumptive income provisions for residents have been grouped and presented in a single clause," the release said.</p>.<p>Also, all presumptive income provisions for non-residents have been grouped and presented in a single clause.</p>.<p>"Due to extensive use of tables, the number of words in the new bill is being reduced by almost 50 per cent vis-a-vis the Income Tax Act, 1961. Overall, it is a genuine attempt towards simplification of income-tax law for ease of reading and comprehension," the release noted.</p>.<p>Among other aspects, ICAI said the removal of provisos and obsolete sections are in line with its suggestions for comprehensive review of the Act.</p>.<p>Further, various suggestions, including those relating to increase in salary threshold for 'specified employees' for perquisite valuation, simplified regime for smaller trusts and institutions and proposing long term capital gains of a business trust to tax at 12.5 per cent rather than MMR (Maximum Marginal Rate) have been proposed in the Finance Bill, 2025 as well as in the new bill.</p>
<p>New Delhi: The new Income Tax Bill will simplify the country's six-decade old tax structure as well as help boost growth of MSMEs, chartered accountants' body ICAI said on Friday.</p>.<p>The Institute of Chartered Accountants of India (ICAI), a key stakeholder in tax matters, is also setting up a five-member group to closely examine various provisions of the bill.</p>.<p>Introduced in Lok Sabha on Thursday, the bill seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation.</p>.<p>With an intent to simplify the six-decade old tax framework, the main objective was to streamline the provisions, removing obsolete references and creating a simpler legal framework, ICAI said in a release.</p>.India's forex kitty jumps $7.654 billion to $638.261 billion.<p>It said the objectives have been sought to be achieved by replacing the concept/terminology of previous year and assessment year with 'tax year' and 'financial year succeeding the tax year', doing away with the provisos and explanations, among others.</p>.<p>ICAI President Charanjot Singh Nanda said the bill is a measure for strengthening employment generation and MSME growth as it would simplify India's tax structure and will give a boost to the Indian economy at large.</p>.<p>"The provisions relating to charitable trusts spread across different Chapters of the Income Tax Act, 1961 are being simplified and consolidated in a single chapter. All the TDS provisions are now contained in one section and presented in the form of a table.</p>.<p>"All presumptive income provisions for residents have been grouped and presented in a single clause," the release said.</p>.<p>Also, all presumptive income provisions for non-residents have been grouped and presented in a single clause.</p>.<p>"Due to extensive use of tables, the number of words in the new bill is being reduced by almost 50 per cent vis-a-vis the Income Tax Act, 1961. Overall, it is a genuine attempt towards simplification of income-tax law for ease of reading and comprehension," the release noted.</p>.<p>Among other aspects, ICAI said the removal of provisos and obsolete sections are in line with its suggestions for comprehensive review of the Act.</p>.<p>Further, various suggestions, including those relating to increase in salary threshold for 'specified employees' for perquisite valuation, simplified regime for smaller trusts and institutions and proposing long term capital gains of a business trust to tax at 12.5 per cent rather than MMR (Maximum Marginal Rate) have been proposed in the Finance Bill, 2025 as well as in the new bill.</p>