CBDT Chairman, Ravi Agrawal, has confirmed that the ongoing review of the Income Tax Act of 1961 will be completed within the six-month timeframe announced by Union Finance Minister Nirmala Sitharaman. The review, which aims to simplify the country’s direct tax laws, was highlighted in the Finance Minister's Budget speech last month.
Speaking at an event celebrating the 165th anniversary of Income Tax in India, Agrawal emphasized the importance of this comprehensive review. He noted that the primary goals are to reduce litigation and provide greater tax certainty for taxpayers. The Chairman assured that the board is approaching this task with a mission-oriented mindset and is confident in meeting the deadline, despite the challenging and transformative nature of the exercise.
FM Sitharaman, who served as the chief guest at the event, underscored the government's commitment to tax reform, which aligns with the broader goal of making India's tax system more transparent and taxpayer-friendly.
He also highlighted the increasing adoption of the new Income Tax Return (ITR) filing regime, with 72% of taxpayers opting for it. He reported significant progress in the faceless assessment initiative, with 6.76 lakh income tax assessments completed and 2.83 lakh appeals finalized by July.
This review of the Income Tax Act is seen as a critical step towards modernizing India's tax framework, ensuring that it aligns with current economic realities and eases compliance for taxpayers.
As the review progresses, taxpayers and stakeholders are keenly watching for the potential changes that could simplify the tax code and enhance the ease of doing business in India.
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