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- On 21st August 2024, celebrating 165 years of Income Tax in India, Finance Minister Nirmala Sitharaman made a big announcement.
- What? A new Income Tax Act might be coming soon in actually 6 months!
- Why? This bold reform aims to make taxes easier to navigate and more user-friendly.
What is happening? Simplified Income Tax Act
The Union Finance Minister in her 2024 Budget speech, hinted at the scope of this upcoming Income Tax reform.
While she didn’t specify whether it would be an entirely new code or a revised version of the current Act, she emphasized that it would be easier to understand.
The aim is to craft a tax code that is concise, clear, and reduces the chances of disputes.
FM Nirmala Sitharaman called for tax notices to avoid technical jargon, making them comprehensible to ordinary citizens.
When is the new Act set to be announced?
Ravi Agrawal, Chairman of the Central Board of Direct Taxes (CBDT) added weight to this announcement.
He stated that the review of the new Income Tax Act will be wrapped up in just six months.
If only tax seasons were this quick!
Also read: India witnesses a surge in Income Tax Return filings in 10 years: From 38 million to 77.8 million
Evolution of India’s Income Tax Act
India’s Income Tax journey began in 1860, introduced by Sir James Wilson.
Since then, the tax system has seen numerous changes, with the most significant being the Income Tax Act of 1961.
The Income Tax Act of 1961 has governed India’s taxation landscape for over six decades.
However, as times change, so must the laws to keep up with the changing times.
Wrapping up
For taxpayers, this reform could mean clearer tax notices, less jargon, and a smoother process overall.
For Chartered Accountants and Tax professionals, this might mean a fresh set of challenges. Change can be exciting, but it’s also a bit of a juggling act!
Imagine a tax code that doesn’t require a legal dictionary or a Chartered Accountant to decipher!
And for the CA students, it could mean some major changes in their Direct Tax paper. (Good luck to them)
The hope is that these changes will lead to a more efficient tax refund process, less litigation, and greater certainty in tax matters.
Good move. Tax laws should be simple. MPs should declare their tax exempted income every year because they are the Law makers. People need to know how much exempted agricultursl income they have every year. Can you imagine people with 100 crore exempted agricultural income debating on tax code applicable to about 7.5 crore people filing returns. How ridiculouus it is.
Biggest moron of all times…not sure how she reached this post .. only tax looter
What gives you the locus standing to judge an FM when we (you included sir) don’t even know what the contents of the new code? So presumptuous!!