A meeting on the comprehensive review of the Income Tax Act 1961 has been chaired by the Union Finance Minister Nirmala Sitharaman.
Revenue Secretary Sanjay Malhotra, Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal, and other senior CBDT officials also attended the meeting.
A comprehensive review of the Income Tax Act 1961 in the Union Budget 2024-25 on July 23 has been announced by Sitharaman.
The Finance Ministry in a post on social media platform X cited that a total of 22 specialized sub-committees have been made to analyse distinct Income Tax Act aspects.
Malhotra told Sitharaman that such committees have been involved actively in distinct meetings both in person and through virtual conferences with the domain experts to explore collaboratively and suggest the rectifications to the Act.
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He indeed said to the finance minister that 6500 recommendations had been obtained via the portal as it was opened dated October 6, showing active public participation for the ease of the income tax act.
The CBDT’s internal committee invited public input for analyzing the 60-year-old Income Tax Act concerning the simplification of language, litigation reduction, compliance reduction, and obsolete provisions.
Public inputs and recommendations were sought in 4 categories simplification of language, litigation reduction, compliance reduction, and redundant/obsolete provisions.
As per the budget announcement by Sitharaman for a complete analysis of the Income Tax Act, of 1961, the CBDT has made an internal committee to track the review and make the Income Tax Act concise, clear, and easy to comprehend, which will decrease disputes, litigation, and furnish tax certainty to assessee.
in the Budget speech of FM Nirmala Sitharaman, it claimed that the complete review of the act would draw down the demand embroiled in litigation. She sought that the review be finished in 6 months.