New I-T Bill, 100% FDI in Insurance: Budget Highlights

New Delhi, Feb 1 (PTI) The government will introduce a new Income Tax bill next week to take forward the "trust first, scrutinise later" concept, Finance Minister Nirmala Sitharaman said on Saturday.

In another major reform move, the minister announced that the Foreign Direct Investment (FDI) in the insurance sector will be increased to 100 per cent from 74 per cent.

Presenting the Budget for 2025-26, Sitharaman said that over the past 10 years, the government has implemented several reforms for the convenience of taxpayers, including faceless assessment.

Sitharaman also mentioned the government coming out with taxpayers' charter, faster returns process and almost 99 per cent of the income returns being on self-assessment.

The government will introduce new Income Tax bill next week in Parliament to take forward "trust first, scrutinise later" concept.

The bill is expected to simplify the current Income Tax (I-T) law and make it easier to comprehend.

Pursuant to the Budget announcement by Sitharaman for a comprehensive review of the Income-tax Act, 1961, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.

In her Budget speech on Saturday, Sitharaman said the government will also facilitate the upgradation of air cargo warehousing for high-value perishable horticulture items as well as initiate measures to deepen and expand services of India Post payments bank in rural areas.