An interior board under the Central Board of Direct Taxes (CBDT) has actually been developed to assess the Income Tax Act of 1961. The board will certainly be led by VK Gupta, Chief Commissioner of Income Tax.
Union Finance Minister Nirmala Sitharaman had actually revealed the development of this board throughout her July 2024 Budget speech, stressing that the evaluation procedure would certainly be finished within 6 months. The main objective is to streamline the Act, making it shorter, clear and less complicated to comprehend, which is anticipated to minimize conflicts and lawsuits and offer higher tax obligation assurance for taxpayers.
“The purpose is to make the act concise, lucid, and easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers. It will also bring down the demand embroiled in litigation,” Sitharaman mentioned.
According to authorities, the interior board’s major emphasis will certainly get on removing obsolete provisions and including finest worldwide techniques to improve conformity.
An main shared that the board is presently evaluating the importance of certain areas and preparing a draft for examination, which will certainly later on be opened up for stakeholder comments.
In a post-budget communication, Revenue Secretary Sanjay Malhotra made clear that the evaluation is not planned to develop a brand-new straight tax obligation code yet to carry out a detailed evaluation of the existing regulation.
Malhotra included that the initial draft of the modified and streamlined Income Tax regulation will certainly be prepared by the interior board of the tax obligation division complying with the evaluation.
