Finance Minister Nirmala Sitharaman, who on Saturday, highlighted boosting private investment to strengthen growth as one of the priorities in the Union budget, promised people that the tax department will "trust first and scrutinise later."
She announced that the new income tax bill will be announced by the government next week to take forward the “trust first, scrutinise later” concept.
📢 New Income-tax Bill to be Introduced
— PIB India (@PIB_India) February 1, 2025
➡️ New bill will be clear and direct in text with close to half of the present law
➡️ Will be simple to understand, leading to tax certainty and reduced litigation#ViksitBharatBudget2025 #Budget2025 #UnionBudget2025 pic.twitter.com/GLjIB3ZbLm
The new bill will be clear and direct in text with close to half of the present law. It will be simple to understand, leading to tax certainty and reduced litigation.
The finance minister noted that the FDI limit for the insurance sector will be raised from 74 to 100 per cent. She, however, clarified that the enhanced limit will be available for those companies that invest the entire premium in India.
“The current guardrails and conditions associated with foreign investment will be reviewed and simplified," she added.
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Claiming that the government has shown steadfast commitment to ease of doing business, the finance minister said the Centre will ensure speedy approvals of company mergers and added that the process for the same will be made simpler.
Further, the minister announced that the revamped central KYC registry will be rolled out in 2025.
She also announced a committee to review and recommend new reforms to enhance the ease of doing business. The initiative aims to streamline regulations, improve efficiency, and attract investments.
