The CBDT proposes setting up an internal committee to undertake a comprehensive review of the Income Tax Act of 1961 to make it more contemporary with modern taxation systems and provide a greater user experience regarding the e-filing portal.
The Central Board of Direct Taxes works under the Department of Revenue in the Ministry of Finance. It is a supreme body that provides critical input for formulating and planning direct taxes in India and supervises the administration of direct tax laws through the Income Tax Department.
The newly constituted committee will work on specific aspects of the Income Tax Act that need to be updated or amended to bring relevance to today’s fast-changing economic scenario. For this, the CBDT has sought feedback from all stakeholders, including taxpayers and tax professionals, to gain insight into suggestions for improving the e-filing process.
Its main motto is to achieve easier filing, reduce litigation, and make it hassle-free for the citizens. With the rise of digital platforms in every sphere, the Central Board of Direct Taxes has a vision to make the e-filing portal smooth and user-friendly in nature. The recommendations of this committee will be of utmost importance for solving issues that taxpayers are facing in the present scenario, which will ensure a smoother and more efficient filing process.
In this quest for transparency and inclusivity, the CBDT has opened the review process to the public. It will solicit suggestions from stakeholders, which will act as the foundation for shaping the country’s future income tax regulations.
As per a release by the Press Information Bureau dated October 7, 2024, suggestions have been invited from the public by the committee on four significant aspects: reduction of litigation, compliance, and eradication of redundant or obsolete provisions. Those taxpayers who wish to send suggestions can log in to the official income tax website and fill in their details under the heading “Suggestions for Comprehensive Review of Income Tax Act.”
This is a move to show that the government is keen to revise tax policies according to the requirements of the modern-day world and simplify compliance for taxpayers. Once deliberations are afoot, participation in this landmark reform would become necessary for all stakeholders.
