CBDT Initiates Review of Income-tax Act, 1961
The Central Board of Direct Taxes (CBDT) has established an internal committee to conduct a thorough review of the Income-tax Act, 1961. This initiative was announced by Finance Minister Nirmala Sitharaman during the Union Budget 2024-25.
Objectives of the Review
The primary aim is to simplify the Act, making it more concise and understandable. This will help reduce disputes and litigation, providing greater tax certainty for taxpayers.
Public Participation
The committee is seeking public input in four key areas: simplification of language, litigation reduction, compliance reduction, and removal of obsolete provisions. A dedicated webpage has been launched on the e-filing portal for this purpose.
How to Contribute
Stakeholders and the public can access the webpage by entering their name and mobile number, followed by OTP validation. Suggestions should reference specific sections or rules of the Income-tax Act, 1961 or Income-tax Rules, 1962.
Timeline
Finance Minister Sitharaman has proposed that the review be completed within six months, aiming to reduce litigation demands.
Doubts Revealed
CBDT -: CBDT stands for the Central Board of Direct Taxes. It is a part of the Indian government that deals with taxes people and businesses have to pay directly to the government, like income tax.
Income-tax Act, 1961 -: The Income-tax Act, 1961 is a law in India that tells people and businesses how much tax they need to pay on their income. It was made a long time ago, in 1961, and sometimes needs updates to make it easier to understand and follow.
Finance Minister Nirmala Sitharaman -: Nirmala Sitharaman is a leader in the Indian government who is in charge of the country’s money matters, like taxes and budgets. She is the Finance Minister of India.
Union Budget 2024-25 -: The Union Budget is a plan made by the Indian government every year about how it will earn and spend money. The 2024-25 budget is the plan for that specific year.
Public input -: Public input means that the government is asking people to share their ideas and suggestions. This helps the government understand what changes people want in the tax rules.
e-filing portal -: An e-filing portal is a website where people can submit their tax-related documents online. It makes it easier for people to file their taxes without having to go to an office.
