The Finance Ministry has sought suggestions from the public for the comprehensive review of the Income-Tax Act, 1961 to make the law concise, clear and easy to understand.
The public can submit their suggestions through a web page accessible to the public in the E-filing portal from October 6.
While presenting the full Budget for FY25, Finance Minister Nirmala Sitharaman said that the government would set up a committee to undertake a “comprehensive review” of the I-T Act. “The purpose is to make the Act concise, lucid, and easy to read and understand.”
Tax experts say that the IT Act, in its current form, has witnessed several amendments since its inception making it deep and wide, posing challenges for implementation without it being open for multiple interpretations, and thus simplification is needed.
“The committee invites public inputs and suggestions in four categories: Simplification of Language, Litigation Reduction, Compliance Reduction, and Redundant/Obsolete Provisions,” the ministry said. To facilitate this, a webpage has been launched on the e-filing portal with the following link: https://eportal.incometax.gov.in/iec/foservices/#/pre-login/ita-comprehensive-review
The public can access the page by entering their mobile number and validating it via OTP. Suggestions should specify the relevant provision of the Income-tax Act, 1961 or Income-tax Rules, 1962 (mentioning the specific section, sub-section, clause, rule, sub-rule, or form number), as the case may be, to which the suggestion relates under the aforementioned four categories.
The review committee is headed by an officer of the rank of chief commissioner of income tax. After the committee submits its report, the government will likely amend the I-T Act the next Budget in February 2025.