Government Invites Suggestions for Simplification of Income Tax Act
The government plans to seek suggestions from the private sector and tax experts in October to simplify the Income Tax Act, 1961. This initiative aims to reduce litigation and make the law more readable. The updated act is expected to be presented in the 2025 Budget session.
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- India
The government is set to invite suggestions from the private sector and tax experts starting October to simplify the Income Tax Act, 1961, according to sources.
During a recent meeting with industry chambers, officials announced that a new functionality on the Income Tax portal will allow suggestions on various sections of the Act.
Finance Minister Nirmala Sitharaman had indicated in the 2024-25 Budget that the review is expected to be completed in six months, aiming to reduce outdated clauses and litigation.
The Central Board of Direct Taxes (CBDT) has formed an internal committee to review the six-decade-old law and make it more concise and understandable.
Sources revealed that the amended law could be presented during the Budget session of Parliament in 2025, potentially forming part of the Finance Bill, 2025.
(With inputs from agencies.)
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