income tax return
An internal committee of the Income Tax Department will review the Direct Tax Act, Section 1961 to remove unnecessary provisions and adopt global best practices for better compliance, Central Board of Direct Taxes (CBDT) Chairman Ravi Aggarwal has said. He said the committee comprising Income Tax officials from across the country has started work to identify areas of reform in the Income Tax Act, 1961.
Why is this review important?
This initiative is being taken up by the central government as part of a comprehensive review of the Act. The CBDT chief said that the review committee is considering global best practices that can be adopted. Apart from this, there is a need to remove unnecessary provisions from the existing Act and also identify those provisions that have expired.
Speaking at a programme organised to mark the 165th anniversary of the Income Tax Department, he said that an internal committee of relevant officials of the department from across the country has been constituted. They have started working to identify areas of improvement. He said that the committee was considering the “problem statement” contained in the recent budget. Aggarwal said that he is trying to find the best way to provide the country with a new direct tax law. However, it is still not clear what actual change will take place after this.
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It will take so many days
During the programme, the CBDT chief assured Union Finance Minister Nirmala Sitharaman that the work on revising the Income Tax Act would be completed within the stipulated time frame of six months. While presenting the budget for 2024-25 last month, Sitharaman had announced that she would revise the Income Tax Act within six months.
