To participate in the New PM Internship Scheme,

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To participate in the New PM Internship Scheme,
To participate in the New PM Internship Scheme,

The Central Board of Direct Taxes (CBDT) has initiated a review process of the Income Tax Act of 1961, inviting public suggestions to simplify tax laws and reduce compliance burdens. Learn how to contribute to this significant reform effort.

In a major reform initiative, the Central Board of Direct Taxes (CBDT) has announced a comprehensive review of the Income Tax Act, 1961, seeking inputs from the public to enhance the Act’s relevance and efficiency. This move comes after the Union Budget 2024-25, where Finance Minister Nirmala Sitharaman emphasized the need for a more accessible and simplified tax code. With a focus on easing compliance and reducing litigation, the CBDT is offering a unique opportunity for taxpayers to have a say in shaping the future of India’s tax laws.

Key Areas of Focus in the Review

The internal committee formed by the CBDT is focusing on four main areas for improvement:

  1. Simplification of Language:
    • The goal is to ensure that the provisions of the Income Tax Act are easier to understand, making the Act more user-friendly for taxpayers.
  2. Litigation Reduction:
    • Addressing frequently disputed provisions is a priority, as this would help reduce the number of tax-related litigations and provide more certainty to taxpayers.
  3. Reduction in Compliance Burden:
    • The review aims to identify ways to simplify compliance requirements, thus reducing the time and effort required for taxpayers to fulfill their obligations.
  4. Removal of Obsolete Provisions:
    • By identifying outdated or redundant provisions, the review seeks to streamline the Act, ensuring that it reflects current economic conditions and practices.

How to Participate and Share Suggestions

Taxpayers and other stakeholders can submit their suggestions through a specially created webpage on the e-filing portal. Here’s how to participate:

  1. Visit the Official Portal:
    Access the webpage at CBDT e-filing portal.
  2. Enter Mobile Number:
    Provide your mobile number to initiate the process.
  3. Validate Using OTP:
    An OTP will be sent to your phone for verification. Once verified, you can proceed to submit your suggestions.
  4. Submit Your Input:
    Share your insights and suggestions on how to improve the Income Tax Act in the specified focus areas.

The Importance of Public Participation

The CBDT’s decision to invite public feedback is a testament to its commitment to a transparent and inclusive process. This collaborative approach aims to ensure that the Income Tax Act reflects the needs of today’s taxpayers while addressing practical challenges in compliance and legal disputes.

Benefits of the Review Process

  • Simplified Tax Compliance:
    A more straightforward Act will help individuals and businesses better understand their tax responsibilities, making compliance easier.
  • Legal Clarity:
    By reducing ambiguous provisions, the review can help minimize disputes, making the legal environment more predictable for taxpayers.
  • Relevance to Modern Needs:
    Updating the Income Tax Act will ensure that it is in sync with the current economic landscape, providing a more robust framework for revenue collection.

The CBDT’s initiative to review the Income Tax Act of 1961 and involve public suggestions is a forward-looking step towards a more efficient and responsive tax system. As citizens, it is a prime opportunity to voice our opinions and contribute to shaping a more taxpayer-friendly environment. Engage in this process and make your insights count.