The Income Tax Department has recently received a significant number of suggestions from stakeholders, totaling 6,500 within the past month, regarding the review of the Income Tax Act. This initiative is part of a comprehensive review process announced in the Budget by Finance Minister Nirmala Sitharaman.
On Monday, the Finance Minister chaired a meeting focused on this crucial review, which was attended by various key officials, including Revenue Secretary Sanjay Malhotra and Chairman of the Central Board of Direct Taxes (CBDT), Ravi Agarwal, along with other senior CBDT officials.
In a post shared on X (formerly Twitter), the Finance Ministry highlighted that Malhotra informed the Finance Minister about the establishment of 22 specialized sub-committees dedicated to examining different aspects of the Income Tax Act. These sub-committees have been actively engaging in discussions, utilizing both in-person and virtual meetings with domain experts to collaboratively explore and recommend enhancements to the legislation.
The Revenue Secretary also updated FM Sitharaman on the substantial feedback received through the public input portal, which was opened on October 6, 2024. The feedback reflects active public participation aimed at simplifying the provisions of the Income Tax Act.
The internal committee of the CBDT had, last month, invited public inputs as part of their efforts to review the six-decade-old Income Tax Act. The focus areas for the review include simplifying the language, reducing litigation, lowering compliance requirements, and addressing obsolete provisions within the Act.
Following the Budget announcement made by Sitharaman, the CBDT put together an internal committee tasked with overseeing the review process. The goal is to make the Income Tax Act more concise, clearer, and easier to understandfor taxpayers, which is expected to reduce disputes and litigation while providing greater certainty to taxpayers.
Overall, public inputs and suggestions were sought in four main categories: simplification of language, litigation reduction, compliance reduction, and the removal of redundant or obsolete provisions. This collaborative approach aims to modernize the Income Tax Act and enhance the taxpayer experience in India.
