Earnings Tax Act, 1961: The aim is to make the Act concise, lucid, and simple to learn and perceive. (Consultant picture)
The Earnings Tax Act, 1961, began its journey in 1922. It accommodates 298 sections and 23 chapters and different provisions in its present type of 1961.
An inside committee of the Earnings Tax Division will evaluate the 1961 direct tax legislation to eradicate redundant clauses in addition to undertake finest international practices to simplify it for taxpayers for higher compliance, CBDT chief Ravi Agrawal has mentioned.
The panel, comprising earnings tax (IT) officers from throughout the nation, has began working to determine areas of enchancment within the Earnings Tax Act, 1961, he mentioned and added that the train is being performed beneath a central government-mandated complete evaluate of the legislation.
Central Board of Direct Taxes (CBDT) chairman Agrawal mentioned the committee is taking a look at the perfect international practices that may be adopted in addition to slicing redundancies within the current legislation and discovering these clauses which have reached their sundown, and therefore, will be eradicated.
“An inside committee of competent officers of the division from all throughout the nation has been shaped. They’ve began working to determine areas of enchancment. This can be a work in progress…,” he advised information company PTI on Wednesday throughout an occasion right here to mark 165 years of earnings tax in India.
He mentioned the committee is wanting on the “downside assertion” given to it within the current Price range. It’s looking for the “finest manner ahead” in giving the nation a brand new direct tax legislation, Agrawal mentioned.
In the course of the occasion, the CBDT chief assured Union Finance Minister Nirmala Sitharaman that the work of reviewing the Act can be executed inside the stipulated timeframe of six months as introduced by her within the Price range offered final month.
The minister, throughout the Wednesday occasion, requested the IT division to make use of easy language in its notices and communications with taxpayers in order that they’ll perceive these rapidly with out getting intimidated.
Agrawal mentioned this issue can also be part of the IT legislation evaluate. The committee is making an attempt to make tax communication easy and simple to grasp to encourage compliance of guidelines by taxpayers, he mentioned.
The Earnings Tax Act, of 1961, began its journey in 1922. It accommodates 298 sections and 23 chapters and different provisions in its present type of 1961.
Sitharaman, whereas presenting the 2024-25 Union Price range, had introduced a “complete” evaluate of the Earnings Tax Act.
The aim is to make the Act concise, lucid, and simple to learn and perceive.
It will scale back disputes and litigation, thereby offering tax certainty to the taxpayers. It’s going to additionally deliver down the demand embroiled in litigation. It’s proposed to be accomplished in six months, she had mentioned.
Agrawal additionally mentioned the CBDT will “put extra officers” inside the subsequent 10-15 days to “expeditiously” clear the “substantial” variety of appeals pending on the Earnings Tax Division stage.
