Review Income tax: The Central Board of Direct Taxes (CBDT) has established an internal committee to supervise an extensive review of the Income-tax Act, 1961 (Act), following the announcement made in the Union Budget 2024–25 on July 23 by the finance minister Nirmala Sitharaman.
The public has been asked to contribute to the review of the I-T Act, which has been in place to simplify the language, reduce litigation, minimize compliance, and eliminate outdated provisions. The goal is to make the Act more succinct, understandable, and clear, which will lead to decreased disputes and litigation, and provide taxpayers with greater tax certainty.
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In order to decrease disagreements and litigation and give taxpayers more tax certainty, the Act is intended to be brief, understandable, and unambiguous.
According to a Press Information Bureau (PIB) release issued on October 7, 2024: The committee invites public inputs and suggestions in four categories:
- Simplification of Language
- Litigation Reduction
- Compliance Reduction, and
- Redundant/Obsolete Provisions
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How to suggest changes to Income Tax Act?
Enter name and mobile number followed up by a validation via OTP. The link is active from October 6, 2024.
Who can suggest?
Stakeholders, experts, public can suggest by entering details on the Income Tax e-filing portal.
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Changes to income tax Act: What the FM said in Budget 2024
In Budget 2024, the finance minister Nirmala Sitharaman highlighted the government’s commitment to driving India’s journey towards becoming a developed nation. Emphasizing the nine identified priorities, the Finance Minister underscored the budget’s focus on simplifying taxation, improving taxpayer services, and reducing litigation.
“It has been a consistent endeavor of the government to simplify taxation, improve taxpayer services, and reduce litigation,” stated Nirmala Sitharaman. “This approach has been appreciated by taxpayers, with 58 percent of corporate tax coming from the simplified tax regime in the financial year 2022-23, and more than two-thirds availing the new personal income tax regime in the last fiscal year.”
The Income-tax Act, 1961, is set to undergo a thorough review, as announced by the Finance Minister. The goal of this review is to streamline the Act, making it more clear and precise, ultimately ensuring tax certainty and minimizing disputes and litigation. “This will provide tax certainty to the taxpayers, reducing disputes and litigation,” she added.
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