In a significant step towards the modernization of India's direct tax laws, the Central Board of Direct Taxes (CBDT) has instructed 28 officers involved in the comprehensive review of the six-decade-old Income-tax Act to work from Delhi between December 2 and December 27. The move aims to ensure the timely completion of the review, slated for submission by December-end, as per the six-month deadline set by the government.
The apex body emphasized a "focused approach" in its recent communication, highlighting the urgency of the task. The review committee comprises an internal panel with 22 sub-committees that have been engaging with domain experts through both in-person and virtual consultations. The primary objective is to simplify the Act, eliminate obsolete provisions, and improve clarity for taxpayers, as envisioned in the Union Budget announcement by Finance Minister Nirmala Sitharaman.
Key Highlights of the Review
- Targeted Changes: Provisions applicable before the assessment year 2012-13 may be deemed redundant, barring exceptions related to income from past investments, ongoing litigation, and pending assessment proceedings.
- Public Input: In October, the committee sought suggestions from stakeholders on reducing litigation, simplifying language, and identifying obsolete sections. Over 6,500 inputs have been received.
- Modernization Goals: The review aims to create a concise and clear tax framework that ensures greater tax certainty, reduces compliance burdens, and curtails disputes.
Officials noted that the review considers the potential impact on pending assessments from 2012-13 onwards, as well as current proceedings related to the assessment year 2014-15 or later.
The outcome of this comprehensive exercise is expected to reshape the Income-tax Act, making it more taxpayer-friendly and aligned with modern economic realities. The final report will undergo further consultations before implementation.
CAclubindia
