The Income Tax Department has called for public suggestions to review the Income Tax Act, which has been in place for over sixty years. This initiative aims to simplify the language of the Act, reduce litigation and compliance burdens, and eliminate outdated provisions.

Following the announcement in the recent Budget by Finance Minister Nirmala Sitharaman, the Central Board of Direct Taxes (CBDT) has formed an internal committee to manage this review. The goal is to make the Act more concise and clearer, which should help minimize disputes and provide taxpayers with greater certainty regarding their tax obligations.

The CBDT stated that the committee is particularly interested in suggestions in four main areas: simplification of language, reduction of litigation, easing compliance requirements, and identifying obsolete provisions. Contributors are encouraged to specify the relevant section or rule from the Income Tax Act, 1961, or the Income Tax Rules, 1962, related to their suggestions.

In the 2024-25 Budget presented in July, the Finance Minister indicated that the review of the Income Tax law is expected to be completed within six months. As this timeline approaches its conclusion in January 2025, it is anticipated that the amended Act could be introduced during the upcoming Budget session of Parliament.

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