Government To Revise ITR Forms In Line With New Income Tax Bill
The push for modernising the Income Tax Rules reflects its broader goal of creating a tax system that is not only more efficient but also better suited to the needs of a digital-first economy.
The government has formed an internal committee comprising revenue officials to review the income-tax rules, including the ITR forms, sources told NDTV Profit. The move follows the introduction of a new Income Tax Bill in Lok Sabha on Thursday.
The committee will be tasked with suggesting changes to the tax rules and guidelines to ensure they are in line with the provisions of the newly proposed bill, which, once passed, will be legally termed Income Tax Act, 2025.
The aim is to make tax filing simpler and more efficient, with a focus on enhancing transparency and improving taxpayer compliance.
A video conference was held between the revenue secretary and senior officials from the Central Board of Direct Taxes on Thursday. The meeting focused on the intricacies of the new IT Bill and explored ways to update the income-tax rules accordingly.
Officials discussed the potential impact of these changes on the filing process and the broader tax administration system.
As part of the proposed changes, the tax department is set to prioritise capacity building, ensuring that both tax officials and taxpayers are well-equipped to navigate the evolving tax landscape.
This includes developing new training resources and tools to help the public and tax authorities understand and implement the upcoming changes seamlessly.
The government's push for modernising the Income Tax Rules reflects its broader goal of creating a tax system that is not only more efficient but also better suited to the needs of a digital-first economy.
The revisions in tax rules will also help minimise administrative delays, making the process faster and more user-friendly for taxpayers across the country.
With the committee now in place, stakeholders are expecting significant progress toward achieving a more modern, efficient and taxpayer-friendly tax system.
The entire exercise makes the tax system more accessible and responsive to the needs of both businesses and individual taxpayers, the source said.
