As announced by the Union Finance Minister In the Union Budget 2024-25, the Central Board of Direct Taxes ( CBDT ) has formed an internal committee to review the Income Tax Act, 1961.
The objective of this review is to modernise the Act, making it more concise, clear, and user-friendly. By doing so, the government aims to reduce legal disputes and litigation, while providing greater certainty to taxpayers.
The committee will focus on several key areas where improvements can be made. These include simplifying the language of the Act to ensure it is more accessible and easier to comprehend, reducing the number of tax-related disputes, streamlining compliance procedures, and eliminating redundant or obsolete provisions that no longer serve a relevant purpose in the current tax structure.
Alongwith internal committee suggestions, the CBDT has opened a web page on the Income Tax Department’s e-filing portal inviting inputs and suggestions from the public. The public consultation process is focused on four key areas: simplification of the language used in the Act, reduction of litigation, easing compliance burdens, and identifying and removing outdated or unnecessary provisions.
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To submit suggestions, stakeholders must enter their name and mobile number, followed by a one-time password (OTP) verification for security purposes. Once verified, they can provide their inputs on the designated webpage. The CBDT has requested that any suggestions made should specify the relevant provisions of the Income-tax Act, 1961, or the Income-tax Rules, 1962. This includes details like the section, sub-section, clause, rule, sub-rule, or form number to which the suggestion pertains. Providing such specific information will help the committee efficiently categorise and address the proposed changes.
The link to the webpage is as follows: Income Tax Comprehensive Review. It went live on October 6, 2024, and is open for access to all interested parties.
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