Following the announcement made by the Union Finance Minister Nirmala Sitharaman during Budget 2024, the Central Board of Direct Taxes (CBDT) has set up an internal committee to oversee a comprehensive review of the Income Tax (I-T) Act. The key goal of this review is to make the income tax law concise, clear and easy to understand which is likely to reduce disputes, litigation and provide greater tax certainty to taxpayers.
There are four categories wherein the income tax department has invited inputs and suggestions. These categories are as follows:
I. Simplification of language
III. Compliance reduction
IV. Redundant/ obsolete provisions
To facilitate this, a link is available where taxpayers can give suggestions across these four categories. You can access the link here:
This webpage can be accessed by entering the name and mobile number. Once you enter this, an OTP is sent which needs to be entered in order to authenticate the identity.
“It’s a good step by government to finally revamp the age-old Income Tax Act. I expect the Act to become more lucid and concise with more Taxpayer and Tax Professionals friendly measures including reduction in compliance and Tax Rates along with more sensible due dates,” says Pratibha Goyal, a Delhi-based chartered accountant and partner of PD Gupta & Company.
These are the steps you need to take in order to give suggestions:
First of all, you have to enter the name and mobile number. On the mobile number, you will receive the OTP which you need to enter in order to verify your identity.
Once your identity is established, you are supposed to enter the section number against which you want to submit the response (as shown in the image below). Also, you can write the respective suggestions for each of the four categories as mentioned above.
Total number of maximum characters in each section is 500. After you enter these details, you can submit the responses.
During the Budget 2024 announcement, the FM has said that the review would be completed in six months. “This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months,” she had said during the Budget speech.
Meanwhile, the second edition of the Direct Tax Vivad Se Vishwas Scheme 2024 which is aimed to reduce litigation and bring certainty for taxpayers became operational with effect from Oct 1.