The Cabinet Friday approved the new income tax bill that will replace the existing six-decade-old Income Tax Act, people familiar with the matter said.
The bill, which aims to simplify the tax structure and reduce disputes, is likely to be introduced in Parliament next week, they said, adding that it may subsequently be sent to the parliamentary standing committee on finance.
The Cabinet also gave its nod to the ₹8,800 crore Skill India Programme, paving the way for industry-aligned skills training across the country.
On Track
It also approved the reorganisation of railway zones and divisions in Andhra Pradesh and Odisha. Announcing the Cabinet decisions, railway minister Ashwini Vaishnaw said a new Rayagada Railway Division under the East Coast Railway Zone will be established and the existing Waltair division will be renamed Visakhapatnam Railway Division under the new South Coast Railway Zone.
This move is expected to speed up approvals for rail projects.
Officials said the new division at Rayagada will strengthen North AP's railway infrastructure and also benefit southern Odisha.
Reducing Tax Litigation
Finance minister Sitharaman had said in her February 1 budget speech that a new income tax bill would be introduced in the current session, saying it would be half as long and "simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation".
She had first announced the plan for a comprehensive review of the Income Tax Act 1961 in the July 2024 budget.
The new bill will incorporate all tax-related changes announced in the budget, including income tax rates, slabs, and tax deducted at source (TDS) provisions, a finance ministry official said.
The government has said the legislation will not add any new tax or increase the compliance burden. "There will be no extra tax on the taxpayers," finance secretary Tuhin Kanta Pandey had said Thursday.
Tax experts expect the new bill to do away with archaic provisions and be less cumbersome. "Changes such as deletion of outdated sections, lack of cross-referencing of Act and rules, less number of provisions and clauses are expected," sad Amit Maheshwari, tax partner, AKM Global.
Revamped skilling plan
The revamped Skill India Programme, a central scheme, will now include three key components - the ₹6,000-crore Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0), the ₹1,942-crore Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), and the ₹858-crore Jan Shikshan Sansthan (JSS) scheme.
Under PMKVY 4.0, the ministry of skills development and entrepreneurship provides short-term skill courses and recognition of prior learning through upskilling and reskilling for the age group 15-59 years.
PM-NAPS will incentivise establishments to engage apprentices by providing financial incentives as per the provisions of the Apprenticeship Act, 1961, in the age group 14-35 years. This is aimed at ensuring school to work transition through hands-on experience.
The Cabinet approved the extension of the tenure of the National Commission for Safai Karamcharis for three more years.
The financial implication of this extension would be approximately ₹50.91 crore, Vaishnaw said.
The tenure of the commission, which was to end on March 31 this year, has been extended to March 31, 2028.
Source Name : Economic Times