Cabinet Approvals on 7 February 2025

On 7 February 2025, the Union Cabinet, chaired by Prime Minister (PM) Narendra Modi, has approved the following:

i.A new Income Tax (IT) Bill 2025 to simplify tax laws, and reduce legal complexities.

ii.Extension of the tenure of National Commission for Safai Karamcharis (NCSK) for 3 years beyond 31.03.2025 upto 31.03.2028.

iii.Continuation and Restructuring of Skill India Programme (SIP).

iv.Revision of divisional jurisdiction under the proposed South Coast Railway (SCoR) zone at Visakhapatnam, Andhra Pradesh (AP).

Cabinet Approves New Income Tax Bill 2025

The Union Cabinet has approved a new Income Tax (IT) Bill 2025 to simplify and modernise India’s tax system. Effective from the Financial Year (FY) 2025-26, the bill aims to simplify tax laws, reduce legal complexities, ease compliance for taxpayers, and cut the law’s length by 50% without introducing new taxes.

• The bill will replace the Income Tax Act of 1961 and will apply to taxpayers from the Assessment Year (AY) 2026-27.

Key Features of the Bill:

i.The new Bill will have shorter sentences, reduced provisos, and easier language for better understanding.

ii.It aims to unify multiple tax structures for various taxpayers, including individuals, companies, Hindu Undivided Family (HUF) Association of Persons (AOPs) Body Of Individuals (BOIs), cooperative societies, etc.

iii.The new Bill will converge to a single tax regime to reduce the overall compliance burden and provide tax certainty.

iv.It will streamline provisions to minimise disputes and legal challenges.

v.The Bill may introduce lower penalties for certain offences, making compliance taxpayer-friendly.

vi.The removal of obsolete/redundant laws will enhance clarity and precision.

vii.The new Bill may also mention the expectations of anti-abuse provisions and a simplification and rationalisation of withholding tax rules.

New Income Tax Slabs (Effective AY 2026-27):

Cabinet Approves Extension of NCSK for 3 Years till March 2028

The Union Cabinet has approved the extension of the tenure of the National Commission for Safai Karamcharis (NCSK) under the Ministry of Social Justice and Empowerment (MoSJE) for 3 years beyond 31 March 2025, up to 31 March 2028. This extension involves a financial implication of approximately Rs. 50.91 crore.

Objectives of the Extension:

• Facilitate the socio-economic upliftment of sanitation workers.
• Improve working conditions in the sanitation sector.
• Achieve Zero Fatalities (ZFs) during hazardous cleaning operations.

Background:

The National Commission for Safai Karamcharis Act, 1993, was enacted in September 1993, and a statutory NCSK was first constituted in August 1994.

• “Safai Karamchari” means a person engaged in/or employed for, manually carrying human excreta or any sanitation work.

Functions of the NCSK:

i.Recommend specific programs to eliminate inequalities faced by Safai Karamcharis.

ii.Study and evaluate the implementation of schemes for rehabilitating Safai Karamcharis and scavengers in particular.

iii.Investigate grievances and take suo-motu action on non-implementation of welfare schemes.

iv.Monitor working conditions, including health, safety, and wages of Safai Karamcharis.

v.Report to the Central or State Government on issues concerning Safai Karamcharis.

vi.Address any other matters referred by the Central Government.

Role Under the MS Act, 2013:

Under the Prohibition of Employment as Manual Scavengers and Their Rehabilitation Act, 2013 (MS Act 2013), the NCSK performs functions such as:

• Monitoring the implementation of the Act.
• Investigating complaints regarding its contravention.
• Advising the Central and State Governments on its effective implementation.
• Taking suo-motu action on non-implementation of the Act.

Cabinet Approves Continuation and Restructuring of Skill India Programme

The Union Cabinet has approved the continuation and restructuring of the Central Sector Scheme – Skill India Programme (SIP) until 2026, with an outlay of Rs 8,800 crore from 2022-23 to 2025-26.

• This initiative aims to develop a skilled, future-ready workforce across India that meets evolving industry needs and global standards through industry-aligned, technology-driven skill training.

Key Components of the Skill India Programme:

i.The programme integrates 3 flagship schemes under a unified structure:

• Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0)
• Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS)
• Jan Shikshan Sansthan (JSS) Scheme

ii.With over 2.27 crore beneficiaries, these 3 flagship schemes of the Ministry of Skill Development and Entrepreneurship (MSDE) focus on Structured Skill Development (SSD), On-the-Job Training (OJT), and Community-Based Learning (CBL).

Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0):

i.PMKVY 4.0 offers National Skill Qualification Framework (NSQF)-aligned skill training for individuals aged 15-59.

ii.It introduces over 400 new courses in Artificial Intelligence (AI), 5th Generation (5G), Cybersecurity, Green Hydrogen (GH), and Drone Technology (DT).

iii.It incorporates OJT for real-world exposure and introduces micro-credential and National Occupational Standards (NoS)-based courses (7.5-30 hours) for targeted skill development

iv.It enhances learning with digital, micro-credential, and multilingual content and focuses on international mobility through Mobility Partnership Agreements (MMPAs).

Note: PMKVY was launched as a pilot in 2015 and was designed as a skill certification and reward scheme. The scheme was implemented by the MSDE through the National Skill Development Corporation (NSDC), Sector Skill Councils (SSCs).

Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS):

i.PM-NAPS encourages Earn-While-Learn (EWL) training for individuals aged 14-35.

• PM-NAPS was launched in 2016. Presently the NAPS-2 is under implementation.

ii.It provides a monthly stipend of Rs 1,500 via Direct Benefit Transfer (DBT).

iii.It supports apprenticeships in AI, Robotics, Blockchain, Green Energy, and Industry 4.0 technologies.

• Special focus on Micro, Small and Medium Enterprises (MSMEs), aspirational districts, and the North-East Region (NER).

Jan Shikshan Sansthan (JSS) Scheme:

i.JSS scheme targets women, rural youth, and Economically Disadvantaged Groups (EDGs) aged 15-45.

• The scheme of  JSS, formerly known as Shramik Vidyapeeth is implemented through a network of Non-Governmental Organizations(NGOs) in India since March 1967.

ii.It offers low-cost, doorstep vocational training for self-employment and wage-based livelihoods.

iii.It also aligned with initiatives like Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Understanding of Lifelong Learning for All in Society (ULLAS).

Key Reforms and Impact of SIP:

i.All certifications under SIP are integrated with Digital Locker system (DigiLocker) and National Credit Framework (NCrF).

ii.SIP supports economic planning through Periodic Labour Force Survey (PLFS) data.

• It strengthens vocational education, apprenticeship, and Lifelong Learning (LLL), and enhances India’s global workforce competitiveness.

Revision of Divisional Jurisdiction Under the Proposed South Coast Railway Zone

The Union Cabinet has granted ex-post facto approval to the revision of divisional jurisdiction under the proposed South Coast Railway (SCoR) Zone at Visakhapatnam, Andhra Pradesh (AP).

Key Decisions Approved:

i.The earlier decision of February 28, 2019, has been partially modified.

ii.The Waltair division will be retained in a truncated form and renamed as Vishakhapatnam division to remove its colonial legacy.

iii.One part of the Waltair division (around 410 kilometres, km) covering sections between stations Palasa-Vishakhapatnam-Duvvada, Kuneru-Vizianagaram, Naupada Junction (Jn.) – Paralakhemundi, Bobbili Jn. – Salur, Simhachalam North – Duvvada bypass, Vadalapudi – Duvvada, and Visakhapatnam Steel Plant (VSP) – Jaggayapalem will be retained as Waltair division under the new SCoR and renamed as Vishakhapatnam division.

iv.The other part of the Waltair division (around 680 km) that covers sections between Kottavalasa-Bacheli, Kuneru-Theruvali Jn., Singapur Road (Rd.) – Koraput Jn., and Paralakhemundi – Gunpurand will be converted into a new division under East Coast Railway (ECoR) with headquarters at Rayagada, Odisha.

Recent Related News:

The Union Cabinet chaired by Prime Minister (PM) Narendra Modi, has given approvals to various schemes and projects on 1 January 2025. The approvals are as follows:

• Continuation of Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) till 2025-26. ·
• Setting up a Fund for Innovation And Technology (FIAT).
• Extension of One-time Special Package on Di-Ammonium Phosphate (DAP) ·
• Memorandum of Understanding (MoU) on the trade of Non-Basmati White Rice (NBWR) between India and Indonesia.