Tax authorities receive thousands of proposals for revision of the income tax law

The Income Tax Department has received 6,500 suggestions from stakeholders on the revision of the Income Tax Act last month. On Monday, Union Finance Minister Nirmala Sitharaman chaired a meeting to discuss the Budget announcement of a comprehensive revision of the Income Tax Act, 1961.

The meeting was attended by Finance Minister Sanjay Malhotra, CBDT Chairman Ravi Agarwal and other senior officials of the Central Board of Direct Taxes (CBDT).

In a post on

Minister of Finance and Corporate Affairs Smt. @nsitharaman today chaired a meeting on comprehensive revision of Income Tax Act 1961 with Shri Sanjay Malhotra, Secretary, D/o Revenue @FinMinIndia; Shri Ravi Agarwal, Chairman @IncometaxIndia and senior CBDT officials.… pic.twitter.com/fLUvYOXPcP

— Ministry of Finance (@FinMinIndia) November 4, 2024

“Union Minister of Finance and Corporate Affairs Smt. @nsitharaman today chaired a meeting on comprehensive revision of Income Tax Act 1961 with Shri Sanjay Malhotra, Secretary, D/o Revenue @FinMinIndia; Shri Ravi Agarwal, Chairman @IncomeTaxIndia and senior CBDT officials. On July 23, 2024, a comprehensive revision of the Income Tax Act, 1961 was announced in the Union Budget 2024-25,” the report said.

These committees have been actively involved in discussions and have held numerous meetings – both in person and via video conferencing – with domain experts to jointly explore and recommend potential improvements to the law.

“During the meeting, the Finance Minister informed FM Smt. @nsitharaman also that 6,500 valuable suggestions have been received through the portal since it was opened on October 6, 2024, reflecting active public participation in further simplification of the IT Act,” the ministry added. in the statement.

Last month, the CBDT’s internal committee called for public input in revising the six-decade-old income tax law, focusing on simplifying language, reducing litigation and compliance burden, and eliminating of outdated provisions.

Following Finance Minister Nirmala Sitharaman’s budget announcement for a comprehensive overhaul of the Income Tax Act, 1961, the CBDT set up the internal committee to monitor the process. The goal is to make the law more concise, clear and understandable, ultimately reducing the number of disputes and lawsuits and providing taxpayers with greater tax certainty.

Public input and suggestions were sought in four key areas: simplifying language, reducing litigation, reducing compliance burdens, and eliminating redundant or outdated provisions.