NEW DELHI: The Institute of Chartered Accountants of India (ICAI) on Wednesday welcomed the newly passed Income Tax Bill, calling it a simple and transparent framework that will improve ease of doing business and bolster India’s position as a preferred investment destination.
Parliament approved the bill on Tuesday, replacing the six-decade-old Income Tax Act, 1961. It will take effect from April 1, 2026. ICAI said the legislation incorporates many recommendations from the Parliamentary Select Committee, which had consulted the institute and other stakeholders.
According to ICAI, around 90 of its suggestions have been accepted. These include limiting the applicability of the Alternative Minimum Tax (AMT) to those claiming certain income or investment-linked deductions, and scrapping the requirement to file returns before the due date to claim refunds.
Other accepted proposals relate to the year of allowability of expenditure where tax deduction is made in the following year, and applying a 6% presumptive rate for online receipts up to the return-filing deadline.
“The new Bill’s streamlined provisions demonstrate the government’s commitment to simplifying taxation, thereby encouraging investment,” ICAI said in its statement.
