rewrite this title and make it good for SEONew income tax bill expected to be presented in Parliament next week, finance secy says it won’t have any new taxes

The new direct tax code or the new income tax bill will not include any new taxes, finance secretary Tuhin Kanta Pandey told Moneycontrol in an interview.The new direct tax code was announced in the Budget 2025-26 by finance minister Nirmala Sitharaman and is set to be introduced in the Budget session of the parliament.”It is an entirely new bill. It is rewritten…It will not change (tax rates).” Pandey was quoted as saying.Later while speaking at a FICCI conference on the Union Budget 2025-26, Pandey emphasised that the budget’s design ensures growth without stoking inflation pressures.

“When we show the numbers, there is nothing hidden elsewhere. Our entire borrowings are going into CAPEX – nothing could be better than this. It’s a non-inflationary budget,” he said.

The capital expenditure programme of Rs 15.48 lakh crores for fiscal year 2025-26 includes Rs 11.21 lakh crores in direct central government spending and Rs 4.27 lakh crores in grants to states for capital projects.This approach marks a significant shift from traditional patterns where government borrowing often funded revenue expenditure, he said.The government has exceeded its fiscal consolidation targets, achieving a deficit of 4.8 per cent against the projected 4.9 per cent for the current year, with plans to reduce it further to 4.4 per cent in the next fiscal year.

The Union Budget 2025-26 tries to balance the impending challenges focusing on demand and supply side imperatives. The stimulus offered in the budget will push growth while fostering macro-economic stability, Pandey noted.

The budget returns Rs 1 lakh crore to the middle class, designed to work through market mechanisms rather than direct government spending.

“Whether citizens save or consume these funds, both outcomes benefit the economy – savings strengthen bank liquidity, while consumption benefits spread across industries,” Pandey explained.

Overall, the theme of the budget has been growth with fairness, trust first, give stimulus to economy and to inculcate and encourage entrepreneurship, he concluded.

During the conference, Central Board of Direct Taxes Chairman, Ravi Agrawal, alluded to the fundamental shift in tax administration approach, emphasising a new ‘PRUDENT’ framework: Proactive and professional, Rule-based, User-friendly, Data-driven, creating an Enabling environment, Non-intrusive administration, and leveraging Technology with transparency.

“It is no longer an adversarial tax department. It is a participative approach aimed at growth of economy and improved governance,” Agrawal said.

Key initiatives include extending the updated returns window from two to four years, with about 9 million updated returns filed in the past two years generating additional tax revenue of Rs 8,500 crore.

The government also announced rationalisation of TDS and TCS provisions, optimising thresholds and rates while decriminalising certain provisions. A new simplified direct tax code is expected to be presented next week, marking the first comprehensive overhaul in decades.

In addition, Central Board of Indirect Taxes and Customs Chairman, Sanjay Kumar Agarwal, underlined that the government has undertaken a comprehensive rationalisation of customs duties across 8,500 tariff lines.

The reform has reduced India’s average customs duty rate from 11.65 per cent to 10.66 per cent, moving closer to ASEAN standards.

“This exercise was conducted to make structures simple while ensuring competitiveness of Indian industries remains intact,” Agarwal said.

The reforms include elimination of seven duty rate slabs and removal of surcharges on 82 tariff lines to simplify the tax structure. Key measures include duty reductions on critical minerals for semiconductors and clean energy, extending export periods for handicrafts from six months to one year, and customs duty cuts on frozen fish paste from 30 per cent to 5 per cent to boost marine exports. The mobile manufacturing sector, already an export success, will benefit from new duty exemptions on component parts.

On the occasion, Industry leaders welcomed the budget’s balanced approach. FICCI President Harsha Vardhan Agarwal called it “a blueprint for resilience, innovation and long-term economic transformation,” noting that tax relief for individuals earning up to Rs 12.75 lakh per annum would enhance disposable income and spur consumption.