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Finance Minister Nirmala Sitharaman in 2024-25 Budget presented in July had proposed that the I-T law review would be completed in six months (Photo: PTI)
The government has proposed to invite suggestions on Income Tax Act, 1961, from the private sector and tax experts beginning October, as part of an exercise to simplify the direct tax law, sources said.
In a meeting with industry chambers earlier this month, the government said that a functionality will be created in the Income Tax portal wherein suggestions could be made on different sections of the I-T Act with a view to simplifying the language and reducing litigation.
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Following the Budget announcement, the Central Board of Direct Taxes (CBDT) had set up an internal committee for a comprehensive review of the six- decade old direct tax law and make it concise, lucid, easy to read and understand.
“In the meeting with industry associations, the revenue department suggested that the functionality be developed by the first week of October to give suggestions for reworking the income tax law,” a source said.
Another source said that the exercise is not to write a new tax law or a tax code.
“Just by removing the outdated clauses, the number of pages could be brought down by about 100. The aim of the I-T law review is simplification of language and mitigation of litigation,” the source added.
Finance Minister Nirmala Sitharaman in 2024-25 Budget presented in July had proposed that the I-T law review would be completed in six months.
Considering that the six-month timeline ends in January, it is widely expected that the amended I-T Act could be brought in the Budget session of Parliament.
Since no new changes are expected in the law, the amended Act could form part of the Finance Bill, 2025 as well, another source said.
“It could be that the revenue department is looking at incorporating the amendments suggested by the industry in the first draft and then put the amended draft law in public domain,” a source said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 29 2024 | 11:07 AM IST
