Blitz Bureau
NEW DELHI: Union Finance Minister Nirmala Sitharaman on November 4 chaired a meeting on the comprehensive review of the Income Tax Act 1961 with Sanjay Malhotra, Secretary in the Department of Revenue and Ravi Agarwal, Chairman of the Central Board of Direct Taxes, and other senior officials of the CBDT.
In the Union Budget this year, the FM had announced a review of the Income Tax Act, 1961, stating that the purpose is to make it concise, lucid, easy to read and understand. “This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers,” she had said.
“The Revenue Secretary informed the Union Finance Minister that 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.
These committees have actively engaged in numerous meetings – both in person and via VC – with domain experts to collaboratively explore and recommend improvements to the Act,” the finance ministry said in a post on X “During the meeting, the Revenue Secretary also apprised the FM that 6,500 valuable suggestions have been received through the portal since it was opened on October 6, 2024, reflecting active public participation towards further simplification of the IT Act,” the post added.
In October, the Central Board of Direct Taxes (CBDT) announced that it has formed an internal committee to focus on simplifying language, reducing litigation and compliance burdens, and removing obsolete provisions. This move signals a fresh push to make tax laws more accessible and easier to navigate for both individuals and businesses.
The review builds on earlier efforts, such as the Direct Taxes Code (DTC) proposed by the UPA Government in 2009, which was revised multiple times but lapsed in 2014. The latest push offers a fresh opportunity to simplify the tax code, with concrete results expected within a defined timeframe.
