Income tax department
Central Board of Direct Taxes (CBDT) Chairman Ravi Aggarwal said on Sunday that the internal committee reviewing the old direct tax law to simplify the language of the law, present the provisions better and the scope of schemes like possible taxation ‘Large scale’ suggestions have been received to increase. Aggarwal said in a conversation with PTI-language that the review panel also studied the discussions and processes related to similar review action taken in Britain, Australia and some other countries.
The review was announced last year
Finance Minister Nirmala Sitharaman had announced a comprehensive review of the Income Tax Act, 1961 in her last year’s budget speech. The purpose of this review was to make this heavy act brief, clear and easier to understand, so that tax disputes decreased and taxpayers would get more tax. After this, an internal committee of the Income Tax Department was formed which invited suggestions from the public on four categories of language simplification, reduction in case, reduction in compliance and unnecessary or obsolete provisions.
Government is bringing new income tax bill
The review committee has received about 6,500 suggestions related to the amendments in the Income Tax Act from various stakeholders. Sitharaman said in his budget speech for FY 2025-26 on Saturday that the government will introduce a new Income Tax Bill in Parliament in the coming week, which will replace the Income Tax Act of 1961. In this regard, Aggarwal said that the Internal Committee received suggestions about simplification of the language of the Act, the structure of various provisions and large -scale suggestions regarding the possibility of implementing possible taxation. Possible taxation scheme works to relieve small taxpayers from tedious work of maintaining regular books in certain circumstances. The person choosing this scheme can declare income at a prescribed rate and in return he gets relief from keeping books for audit. The CBDT chief said about the new Income Tax Bill, “The way it has been prepared is to make the understanding of the provisions of the Act actually easier for the taxpayer. Apart from this, some old provisions can also be removed. “
(With PTI/language input)
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