The Income Tax Department has received a significant response from stakeholders, amassing 6,500 suggestions over the past month for the comprehensive review of the Income Tax Act, 1961. On Monday, Finance Minister Nirmala Sitharaman led a key meeting to discuss the progress of this pivotal Budget initiative.
High-level attendees included Revenue Secretary Sanjay Malhotra, Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal, and other senior officials from the CBDT. The Finance Ministry shared on social media platform X that Malhotra briefed the Finance Minister on the formation of 22 specialised sub-committees. These committees have been tasked with reviewing various elements of the I-T Act and have engaged in discussions with domain experts through in-person meetings and virtual conferences to assess potential reforms.
"Revenue Secretary also apprised FM Smt. @nsitharaman that 6,500 valuable suggestions have been received through the portal since it was opened on 6 October 2024, reflecting active public participation towards further simplification of the IT Act," the Finance Ministry's post highlighted.
In line with Finance Minister Sitharaman's Budget announcement for a comprehensive review, the CBDT had initiated an internal committee to guide the review process aimed at making the six-decade-old Income Tax Act more concise, user-friendly, and comprehensible. The overarching goal is to reduce disputes, lower litigation, and provide clearer tax certainty for taxpayers.
Public feedback was solicited under four main categories: simplification of language, litigation reduction, compliance reduction, and elimination of outdated provisions. The active response underscores a strong public desire for a modern, streamlined tax code that enhances efficiency and reduces taxpayer challenges.
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