CBDT forms an internal committee for full review of Income-Tax Act | Finance News
The Union finance ministry on Monday invited public input and suggestions for a review of the Income-Tax Act, which was announced in this year’s Budget.
Comments were sought in four categories: Simplifying the language, litigation reduction, compliance lessening, and redundant/obsolete provisions.
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The Central Board of Direct Taxes (CBDT), under the ministry, has set up an internal committee to oversee the review.
“The goal is to make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers,” the finance ministry said in a statement.
However, it didn’t give the details about the committee.
Union Finance Minister Nirmala Sitharaman in her Budget speech this year announced a review of the Act.
“It has been our endeavour to simplify taxation. We have taken a number of measures in the last few years including introduction of simplified tax regimes without exemptions and deductions for corporate tax and personal income tax. This has been appreciated by tax payers. 58 per cent of corporate tax came from the simplified tax regime in financial year 2022-23. Similarly, as per data available till now for the last fiscal, more than two thirds have availed the new personal income tax regime,” she said.
The ministry statement said: “Suggestions should specify the relevant provision of the Income-tax Act, 1961 or Income-tax Rules, 1962 (mentioning the specific section, sub-section, clause, rule, sub-rule, or form number), as the case may be, to which the suggestion relates under the aforementioned four categories.”
Tax experts are of the view that the government’s initiative underpins transparency in tax policy making.
“Not only is this an unprecedented opportunity for businesses to participate in evolving tax legislation, which will govern them in future, it will also provide the policymakers with the adequate breadth in their formulation approach. The impending tax legislation will be an important pillar of India’s aspirational macro-economic future, and it is of utmost importance that the process deployed in developing this legislation is thorough, transparent and worthy,” said Sumit Singhania, partner, Deloitte India.
Maneesh Bawa, partner at Nangia Andersen India, said: “This crowd-sourced approach aims to address the practical challenges faced by taxpayers, accountants, and legal professionals, ensuring that their real-world experiences help shape the reforms.”
First Published: Oct 07 2024 | 11:06 PM IST
