Tax Department Receives Thousands Of Proposals For Income Tax Act Review

The meeting was attended by Revenue Secretary Sanjay Malhotra, CBDT Chairman Ravi Agarwal, and other senior officials from the Central Board of Direct Taxes (CBDT)

Last month, the CBDT's internal committee called for public input on reviewing the six-decade-old Income Tax Act

Source : PTI

The Income Tax Department has received 6,500 suggestions from stakeholders over the past month regarding the review of the Income Tax Act. On Monday, Union Finance Minister Nirmala Sitharaman chaired a meeting to discuss the Budget's announcement of a comprehensive review of the Income Tax Act 1961. 

The meeting was attended by Revenue Secretary Sanjay Malhotra, CBDT Chairman Ravi Agarwal, and other senior officials from the Central Board of Direct Taxes (CBDT).

In a post on X, the finance ministry shared that Revenue Secretary Sanjay Malhotra informed the Finance Minister that 22 specialised sub-committees have been formed to review various aspects of the Income Tax Act. 

Union Minister for Finance and Corporate Affairs Smt. @nsitharaman today chaired a meeting on the comprehensive review of the Income Tax Act 1961 with Shri Sanjay Malhotra, Secretary, D/o Revenue @FinMinIndia; Shri Ravi Agarwal, Chairman @IncomeTaxIndia and senior CBDT officials.… pic.twitter.com/fLUvYOXPcP

— Ministry of Finance (@FinMinIndia) November 4, 2024

“Union Minister for Finance and Corporate Affairs Smt. @nsitharaman today chaired a meeting on the comprehensive review of the Income Tax Act 1961 with Shri Sanjay Malhotra, Secretary, D/o Revenue @FinMinIndia; Shri Ravi Agarwal, Chairman @IncomeTaxIndia and senior CBDT officials. A comprehensive review of the Income Tax Act 1961 was announced in the Union Budget 2024-25 on 23rd July 2024,” it said.

These committees have been actively engaging in discussions and holding numerous meetings—both in person and via video conference—with domain experts to explore and recommend potential improvements to the Act collaboratively.

"During the meeting, the 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 ministry added in the statement.

Last month, the CBDT's internal committee called for public input on reviewing the six-decade-old Income Tax Act, focusing on simplifying language, reducing litigation and compliance burdens, and eliminating obsolete provisions. 

Following Finance Minister Nirmala Sitharaman's Budget announcement for a comprehensive review of the Income Tax Act 1961, the CBDT established the internal committee to oversee the process. The goal is to make the Act more concise, clearer, and easier to understand, ultimately reducing disputes and litigation while providing greater tax certainty for taxpayers.

Public inputs and suggestions were invited in four key areas: simplification of language, reduction of litigation, reduction of compliance burdens, and elimination of redundant or obsolete provisions.