CBDT to Complete Review of Income Tax Act in Six Months

CBDT Chairman Ravi Agrawal announced that the review of the Income Tax Act of 1961 will be completed in six months. Union Finance Minister Nirmala Sitharaman's recent Budget speech highlighted the need for a simpler tax law. Agrawal noted significant acceptance of the new tax filing regime and reported commendable tax collection performance for the fiscal year.

CBDT Chairman Ravi Agrawal has confirmed that the review of the Income Tax Act of 1961 will be finalized within six months. This follows Union Finance Minister Nirmala Sitharaman's budget announcement to simplify the country's direct tax laws.

Agrawal expressed the importance of making the Act concise and easy to understand. The initiative aims to reduce litigation and provide tax certainty. He assured the Finance Minister, who was present at the event, that the task would be completed as scheduled.

Additionally, Agrawal highlighted the widespread acceptance of the new Income Tax Returns (ITR) filing system, which saw 72 percent uptake this time around and significant first-time filer numbers. He also reported a robust 17.70% increase in direct tax collections, amounting to Rs 19.58 lakh crore.

(With inputs from agencies.)