A meeting on the thorough review of the Income Tax Act 1961 was presided over by Finance Minister Nirmala Sitharaman and included senior CBDT officials, Revenue Secretary Sanjay Malhotra, and CBDT Chairman Ravi Agarwal.
The Union Budget 2024–25, which was presented on July 23, included a thorough examination of the Income Tax Act of 1961. The Union Finance Minister was notified by the Revenue Secretary that 22 specialized subcommittees had been formed to examine the different facets of the Income Tax Act.
In order to jointly examine and suggest changes to the Act, these committees have actively participated in a large number of meetings with subject matter experts, both in person and through virtual conferences.
The Revenue Secretary also informed the Minister at the meeting that since the portal's launch on October 6, 6,500 insightful proposals had been submitted, demonstrating the active public's desire to further simplify the IT Act.
The Act is intended to be brief, understandable, and unambiguous in order to decrease disagreements and litigation and give taxpayers more tax certainty. In four areas—language simplification, litigation reduction, compliance reduction, and redundant/obsolete provisions—the committee solicited public opinion and proposals.
In her budget speech, FM Sitharaman had stated that a thorough examination of the Act would also reduce the demand that was the subject of legal disputes. In six months, she suggested, the review would be over.
