The Union government on Monday formally launched the process to revamp the existing income-tax regime with four key objectives in mind – simplification of language, reduction of litigations, ease of compliance, and scrapping of obsolete provisions.
This initiative is in line with announcements made in the Union Budget 2024-25 by finance minister Nirmala Sitharaman in July, weeks after the Narendra Modi government was sworn in for a third term.
“The goal is to make the Act (Income-tax Act, 1961) concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers,” the Central Board of Direct Taxes (CBDT), an arm of the finance ministry, said in a statement on Monday.
To this end, CBDT formed an internal committee to oversee a comprehensive review of the Income-tax Act and invited suggestions from the public. To facilitate this, the statement said a webpage has been launched on the e-filing portal.
During her Budget speech, Sitharaman announced the government’s intent to make tax laws simpler. “I am now announcing a comprehensive review of the Income-tax Act, 1961. The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers,” she said in Parliament on July 23.
|