New Delhi, Feb. 9 -- The new income tax bill must align with global best practices to attract foreign investment, support domestic businesses, and benefit individual taxpayers, experts said as India's tax regime prepared for a major overhaul.

Global best practices should include those on investment incentives for venture capitalists, a threshold-based approach for MSMEs-similar to models in the UK and US-and measures to modernize tax administration, tax experts said.

The Union cabinet approved the income tax bill on 7 February to replace the existing law, and it is expected to be tabled in Parliament today.

"With India's growing role in the global economy and the increasing relevance of digital transactions, it would be difficult for t...