Finance Minister Nirmala Sitharaman had announced in her budget speech that a new Income Tax Bill will be introduced in Parliament soon. With its implementation, there is a possibility of major changes in income tax rules. The Central Board of Direct Taxes (CBDT) chairman Ravi Aggarwal had a special conversation with CNBC Awaaz correspondent Alok Priyadarshi on this subject.
Need to change 64 years old income tax act
Ravi Aggarwal said in the conversation that the current Income Tax Act is 64 years old and has been changed from time to time. Now the time has come to convert it completely new and modern laws. The new income tax law is being made as per the facility of taxpayers. It will remove the old and irrelevant provisions, making it almost half of it than before.
AI and digital economy will get space
According to Ravi Aggarwal, the new Income Tax Act has taken special care of artificial intelligence (AI) and digital economy. Apart from this, recommendations of various committees of Parliament will also be included in it. The government aims to include more and more people in the new tax regime. Currently about 75% of taxpayers are in the new tax regime, but after the tax exemption, the figure can reach 95-97%. In addition, the process of filing tax returns for taxpayers will also be made easier.
No plan to change GST rate on online gaming
Meanwhile, Central Indirect Taxes and Customs Board (CBIC) Chairman Sanjay Aggarwal also told in a special conversation with CNBC Awaaz that no reconsideration is being done at the moment on online gaming companies on 28% GST.
Custom duty and infra development cess will improve
Sanjay Aggarwal informed that a plan is being made to reduce custom duty. The items on which more custom duty were imposed will be given relief. Currently custom duty has been reduced from 15% to 8%. In addition, Agri and Infra Development Cess (AIDC) will also be rationalized.
There is no concern about America’s tariff
According to the CBIC chairman, India has no specific concern about the tariff imposed by the US. At the same time, online gaming has recorded four times the increase in GST Revenue.
With the introduction of the new Income Tax Act, taxpayers will get a simple and transparent tax system, which will make the process of repayment more comfortable.
