Income Tax Changes: The government wants to simplify the income tax system, for which the new tax regime has already been introduced. Now the government has formed a panel…
Big changes can be made in the income tax rules in the coming days. The government has formed a panel to simplify the direct tax rules. It is being said that many rules can be abolished based on the suggestions of the panel.
More than 90 sections became irrelevant
According to a report published in Business Standard, the panel believes that more than 90 sections of the Income Tax Act 1961 have become irrelevant. According to the report, this has come to light in the discussions held in the last few days under the supervision of Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal. It has been believed in the discussion that more than 90 sections have lost their relevance over time. This claim has been made in the report quoting officials associated with the discussion.
Panel to simplify taxation
This report has come at a time when the Finance Ministry is trying to simplify the income tax rules. For this, the Revenue Department of the Finance Ministry has formed a panel under the leadership of Chief Commissioner of Income Tax VK Gupta. The panel has been given the task to give suggestions to simplify the decades-old Income Tax Act.
Initial discussions on exemptions and deductions
It is being told that the initial discussions in the panel are centered on issues like exemptions available under the Income Tax Act and income tax appeals. The panel’s focus is on rationalizing income tax exemptions, taking the methods of computation to the level of global standards and making the appeal system less tedious. The report quoted an official as saying that the panel is focused on exemptions and deductions including Special Economic Zone, telecommunication, capital gains.
Changes have already begun
Let us tell you that the government has already started extensive changes in the income tax system with the new tax regime. The government is trying to simplify the system of direct taxation i.e. tax levied on income, in which deductions and exemptions are minimal. If this happens, it will be easy for taxpayers. There is a provision of many exemptions and deductions in the already existing old tax system. The government believes that exemptions and deductions make the old tax regime complex. For this reason, a new tax regime has been introduced, which provides for fewer exemptions and deductions, but taxpayers get the benefit of a comparatively lower tax rate.
