Income Tax Act Review to Be Completed as Planned, Says CBDT Chairman

The review of the Income Tax Act of 1961 will be completed within six months, according to CBDT Chairman Ravi Agrawal. Union Finance Minister Nirmala Sitharaman announced in her Budget speech last month that the direct tax law would be simplified and reviewed within this timeframe.

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Agrawal stated, "We have an important task on hand, and that is the comprehensive review of the Income Tax Act, 1961. The purpose is to make the Act concise, lucid, and easy to read and understand." This initiative aims to reduce litigation and provide tax certainty to taxpayers.

Income Tax Returns Regime

The new regime for filing Income Tax Returns (ITRs) has gained widespread acceptance. Agrawal noted that 72 per cent of taxpayers opted for it this time. Additionally, there have been 58.57 lakh first-time filers of ITRs till July 31.

During an event marking the 165th Year of Income Tax in India, Agrawal assured the finance minister that the task would be completed within the given timeframe. The event was attended by Union Finance Minister Nirmala Sitharaman as the chief guest.

Faceless Regime Performance

The chairman highlighted that a total of 6.76 lakh income tax assessments were completed under the faceless regime so far. Moreover, 2.83 lakh appeals were finalised by July.

Agrawal described the work as challenging yet transformative and stated that they have taken on the assignment in a mission mode. He emphasised that this exercise aims to make the Act easier to understand and implement.

Direct Tax Collections

The performance in direct tax collections has been satisfying, with Rs 19.58 lakh crore revenue collected during the 2023-24 fiscal year. This figure represents a robust increase of 17.70 per cent from the previous year.

Agrawal's comments reflect a commitment to making tax laws more accessible and reducing disputes. The review process is expected to bring clarity and ease for taxpayers across India.