New Income Tax Bill To Focus On Enabling Taxpayers To Voluntarily Update And Renew Finances
The new Income Tax Bill, 2025, was introduced in Parliament on Feb. 13, 2025, and was referred to a parliamentary panel.
The Income Tax department is working to give shape to the rules, forms and procedures for the new Income Tax Bill, 2025, which aims to simplify the six-decade old direct tax law.
Speaking at the 166th Income Tax Day event here, Central Board of Direct Taxes (CBDT) Chief Ravi Agarwal also said the department is following the principle of 'enforcement with empathy', wherein it is enabling taxpayers to review and voluntarily update their finances.
Agarwal said "work is already underway to give shape to its rules, forms, and procedures, a critical next step... These will define how the law functions and practice. And I am confident that just like the bill, these too would reflect our shared commitment to clarity, simplicity, and taxpayer convenience."
The new Income Tax Bill, 2025, was introduced in Parliament on Feb. 13, 2025, and was referred to a parliamentary panel. The panel was submitted its report to Parliament on July 21 suggesting some changes to the I-T bill.
Agarwal said the Income Tax department will continue to play its role in making India Viksit Bharat by collecting fair taxes, fostering voluntary compliance, and ensuring that are systems are worthy of trust citizens that put in place.
Agarwal said the department has been using data analytics for voluntary compliance.
"Our 'Nudge campaign', which is a short form for non-intrusive usage of data to guide and enable taxpayers, today uses behavioural insights and transactional level data to detect discrepancies," he said.
"Be it disclosed income, incorrect deductions, or high risk claims. Rather than launching compliance measures at once, we are now enabling taxpayers to review and voluntarily update their filings. This is enforcement with empathy and it reflects department's evolving mindset to trust persons," Agarwal added.
