The government aims to make the Income-tax Act, 1961, concise and easy to understand. The goal is to ensure taxpayers can easily navigate tax laws without confusion.
- Reducing Litigations: By making tax laws clearer, the government hopes to minimize disputes and reduce the number of cases that end up in court. This will provide greater certainty for taxpayers regarding their obligations.
- Easing Compliance: The revamp process includes creating a more straightforward compliance system, allowing taxpayers to fulfill their obligations with less hassle. This aligns with the government’s commitment to improving taxpayer experience.
- Scrapping Obsolete Provisions: Outdated and unnecessary provisions will be eliminated, streamlining the tax process and making it more relevant to current economic conditions.
Government’s Commitment to Reform
During the Union Budget 2024-25, Finance Minister Nirmala Sitharaman highlighted the government’s ongoing efforts to simplify tax laws. A comprehensive review of the Income-tax Act has been announced, with a target completion timeline of six months.
Public Participation Encouraged
The Central Board of Direct Taxes (CBDT) has formed an internal committee to oversee the review and has invited public suggestions through a newly launched webpage on the e-filing portal. This move aims to foster transparency and community engagement in shaping tax policy.
Conclusion
The government’s push for a revamped income tax regime is expected to lead to increased revenue collections and enhanced taxpayer satisfaction. With robust growth in tax revenue already observed, these reforms will likely further strengthen the Indian economy.
