The Supreme body of Chartered accountants, ICAI, cited that the new income tax bill provides a simple and transparent framework that facilitates the operations of business and supports the objective of India to become the most perfect destination of investment.
A new income tax bill has been passed by the Parliament to supersede the 60-year-old Income Tax Act, 1961, that will come into effect from April 1, 2026.
As per the Institute of Chartered Accountants of India (ICAI), the bill incorporates suggestions from the Parliamentary Select Committee, which consulted ICAI and other stakeholders.
The ICAI said in a statement that nearly 90 suggestions of the institute have been acknowledged in the bill.
The suggestions contained the Alternative Minimum Tax (AMT) applicability to only those persons who have claimed deductions for certain income or investment-linked tax deductions, and removal of the requirement to file a return on or before the due date for claiming a refund.
“By streamlining the structure and provisions, the new Bill reflects the government’s commitment to enhancing ease of doing business by providing a tax framework that is simple and clear, thus supporting India’s goal of becoming the favoured destination for investment,” ICAI stated.
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The other suggestions were about the year of allowability of expenditure, where tax deduction takes place in the subsequent year, and the presumptive rate of 6 per cent applicability for the receipts in online mode up to the deadline of return filing.
