India's New Tax Code: Simplification on the Horizon

An internal committee of India's Income Tax Department, guided by suggestions for simplification and structural improvement, is paving the way for a new tax law. The proposed changes, inspired by international standards and local input, aim to reduce litigation and enhance transparency while introducing the updated Income Tax bill in Parliament.

India's Income Tax Department is poised for a major overhaul as it seeks to introduce a new tax law, replacing the existing act from 1961. The initiative comes after widespread calls for simpler language and expanded presumptive taxation.

CBDT Chairman Ravi Agrawal highlighted that many suggestions have been incorporated into the draft bill, which looks to emulate tax simplification exercises from countries like the UK and Australia. The focus is on making tax provisions easier to understand and reducing legal disputes.

The redesigned approach promises a taxpayer-centric system. The new Income Tax bill will soon be tabled in Parliament, marking a shift towards greater clarity and reduced compliance burdens.

(With inputs from agencies.)