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CBDT Chairman Says I-T Act Review Targets Simplified Law For Taxpayers
"We are working towards how can we make it (Income Tax Act) simple so that the taxpayer feels comfortable seeing the provisions himself or herself and that it is more user friendly," added Agrawal
![CBDT Chairman Says I-T Act Review Targets Simplified Law For Taxpayers CBDT Chairman Says I-T Act Review Targets Simplify Law For Taxpayers Union Budget 2024 CBDT Chairman Says I-T Act Review Targets Simplified Law For Taxpayers](https://feeds.abplive.com/onecms/images/uploaded-images/2024/07/25/07943d4ef1ec754a4279c240be4e72461721907784486939_original.png?impolicy=abp_cdn&imwidth=1200&height=675)
Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal said that the budget announcement regarding a thorough review of the Income Tax Act, 1961, meant to streamline the "bulky" lay, making it more understandable and user-friendly for taxpayers. The initiative also intends to integrate new technological advancements into the Act's processes.
Initially launched in 1922, the Act currently comprises 298 sections, spread across 23 chapters, alongside additional provisions.
In a post-budget interview with the news agency PTI on Wednesday, Agrawal mentioned that over time, the Act has accumulated "redundancies," resulting in its current "thick and bulky" form. "The taxpayers also feel that the Act is not so simple, as it ought to be...it is cumbersome...so the attempt is if we can make this Act simpler, simpler to comprehend, simpler in terms of language, simpler in terms of presentation, then that hitch of the taxpayer to actually not see the Act and take the help of a tax practitioner or someone (maybe eased)..." he said.
"We are working towards how can we make it (Income Tax Act) simple so that the taxpayer feels comfortable seeing the provisions himself or herself and that it is more user friendly," added the head of CBDT.
Agrawal stressed the importance of reviewing the law in light of technology's integration into tax administration, stating, "We have to see where the gaps are and how we actually can align technology with the provisions of the Act.”
He added that they are aiming for further improvements in the law. On Tuesday, during the presentation of the Union Budget for 2024-25, Union Finance Minister Nirmala Sitharaman announced a "comprehensive" review of the Income Tax Act of 1961.
"The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months," FM said in her speech.
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