Guwahati, Feb. 2: A day after presenting the Union Budget 2025-26, Union Finance Minister Nirmala Sitharaman, on Sunday, described the budget as one that is “by the people and for the people”.

“One thought was that the direct tax should be made simple and that it should be easy for compliance. This was announced in the July 2024 Budget. Following this, we were working to get the new Income Tax Bill ready within six months,” she told a national newswire, on Sunday.

Addressing concerns surrounding direct taxation and the income tax regime, Sitharaman also provided insights into the upcoming Income Tax Bill, set to be tabled in Parliament next week.

Reflecting on the government's commitment to simplifying the tax system, the Finance Minister highlighted the importance of ease of compliance.

Sitharaman also acknowledged the middle class’ growing concerns, admitting that their aspirations had often been overlooked.

“We have heard the voice of the middle class,” she told the newswire, recognising their desire for a more responsive government.

The Finance Minister also noted that while the government has been perceived as focusing heavily on the welfare of the poor, the middle class had raised valid concerns.

“There was also a feeling that the government was very inclusive regarding the poor and vulnerable sections. However, after the July Budget, wherever I travelled, I found a voice of the middle class that stated that while they were proud taxpayers, they felt their issues were not being addressed,” Sitharaman added.

The Finance Minister stressed that while the new tax law would not undergo a major overhaul, it aimed to address these concerns by simplifying the language and reducing the compliance burden.

“The emphasis was more towards simplifying the language, reducing the compliance burden, and making it user-friendly. We worked to ensure that the law would not suffer from multiple interpretations, which had often been misused as rent-seeking tools,” she explained.

On the subject of taxation rates, Sitharaman clarified that the government is not seeking to restructure the tax system radically, but is exploring ways to make it more taxpayer-friendly.

“As I had specified in the July Budget, it was not about great restructuring. However, for years now, we have been looking at ways through which the rates could be a lot more taxpayer-friendly,” she said.

The government is set to introduce the new income tax legislation in Parliament next week during the current budget session.