Overhaul of Income Tax Act: India Receives 6,500 Public Suggestions to Streamline Taxation

0

India’s income tax landscape is on the brink of a transformative change as the Income Tax Department recently reported receiving over 6,500 public suggestions to aid in a comprehensive review of the six-decade-old Income Tax Act, 1961. This initiative aligns with Finance Minister Nirmala Sitharaman’s vision, announced in the 2024 Budget, to simplify the tax code, reduce litigation, and eliminate outdated language. The Central Board of Direct Taxes (CBDT), spearheading this review, aims to create a more concise and comprehensible tax structure that will enhance compliance, reduce disputes, and improve taxpayer experience.

The four primary areas for suggested reforms include simplifying language, reducing compliance burdens, minimizing litigation, and removing obsolete provisions. With the feedback window open, taxpayers, tax professionals, and industry stakeholders have submitted recommendations across these categories. The aim is to make the tax laws clearer, potentially reducing the frequent misunderstandings that often lead to legal disputes. According to officials, the government hopes that the revised law will improve tax certainty, attract foreign investment, and align India’s tax regime more closely with international standards.

In line with the Finance Minister’s goal of completing the review by early 2025, an internal committee has been set up to evaluate the suggestions and implement necessary changes. This modernization could reshape India’s fiscal environment by fostering a more taxpayer-friendly system and supporting economic growth.

About Author

error: Content is protected !!

Maintain by Designwell Infotech