India to Revise Income Tax Act by Early Next Year
This feature will enable stakeholders to come up with suggestions related to the Act and suggest changes to the Act.
The Indian government announced the introduction of a new feature on the Income Tax portal
India may soon simplify its income tax laws. The Modi government plans to start gathering feedback from the private sector and tax experts on the Income Tax Act, 1961, starting in October.
This is part of an effort to make tax laws clearer and reduce legal disputes.
During a recent meeting, the Indian government announced the introduction of a new feature on the Income Tax portal.
This feature will enable stakeholders to come up with suggestions related to the Act and suggest changes to the Act.
Earlier this year, the Central Board of Direct Taxes (CBDT) established a committee to review the tax law, which has been there for 60 years.
The main goal of the government is to make the law shorter and easier to understand.
The revenue department wants the new portal function ready by the first week of October.
They are not looking to create a new tax law but to update the current one. Removing outdated clauses may shorten the document by about 100 pages.
Finance Minister Nirmala Sitharaman said the review should be done in six months. This means the new Income Tax Act could be presented in the Budget session of Parliament early next year.
The new Income Tax Act might be part of the Finance Bill for 2025. Before sharing it with everyone, the government will ask the industry for their ideas on the first draft.
