Nirmala also announced that the proposed new I-T Bill would be taken up for discussion in the monsoon session of Parliament
New Delhi: Union finance minister Nirmala Sitharaman on Tuesday said that the proposed new Income Tax (I-T) Bill would be taken up for discussion in the monsoon session of Parliament.
Addressing the Lok Sabha, Sitharaman said the new I-T Bill with an objective of superseding the existing Income-Tax Act of 1961, was introduced in the House on February 13, and now it is currently being vetted by the select committee, which has been mandated to submit its report by the first day of the next session of Parliament. The I-T Bill, however, seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation.
Replying to the discussions on Finance Bill 2025 in the Lok Sabha, Sitharaman said the Budget provides “marginal relief” under the Income Tax law for those taxpayers whose income exceeds Rs 12 lakh per annum by a small margin.
“The Finance Bill provides unprecedented tax relief to honour taxpayer... We have recognised the contribution of the middle class,” she said, adding that collections in personal income tax have shown considerable buoyancy in the last few years and they have been increasing around 20 per cent year-on-year.
Speaking on the rationalisation of custom duties, the minister said the rationalisation, implemented amidst the US tariff threats, may hurt the Indian economy. However, it is expected that lowering trade barriers can help India's goals of self-reliance and global trade integration for its economy.
The government is learnt to have considered various strategies, including a bilateral trade deal with potential zero duties to address the threat from the US.
The minister said amendments to the simplified safe harbour regime for investment funds have been introduced to provide greater clarity and ease of doing business. “These changes are part of a broader effort to align India’s trade and investment policies with global standards while ensuring fair taxation and promoting domestic industry,” she added.
The Union Budget envisages a total expenditure of Rs 50.65 lakh crore, an increase of 7.4 per cent over the current fiscal. The total capital expenditure proposed for the next fiscal is Rs 11.22 lakh crore and an effective capital expenditure of Rs 15.48 lakh crore. It proposes a gross tax revenue collection of Rs 42.70 lakh crore and a gross borrowing of Rs 14.01 lakh crore.
The Lok Sabha later passed the Finance Bill 2025 after incorporating 35 government amendments, including one that abolishes a six per cent digital tax on online advertisements.
With the passage of the Bill, the Lower House completed its part of the Budgetary approval process and now, the Upper House (Rajya Sabha), will consider the bill. After the Rajya Sabha gives its nod on the bill, the budgetary process for 2025-26 will be complete.
