CBDT Chairman Ravi Agarwal further said that we have formed an internal committee for a comprehensive review of the Income Tax Act. The committee has started working.
CBDT Chairman Ravi Agarwal has had an exclusive conversation with CNBC Awaaz regarding income tax. During this conversation, Ravi Agarwal said that out of all the taxpayers in the country, only 0.1% are sent tax notices. Even after this, we will try to implement what the Finance Minister has said. When Chairman Ravi Agarwal was questioned about the language of the income tax notice, he said that as far as the language of the tax notice is concerned, work has already started on it.
He said that the Income-tax Act is of 1961 and many things have been taken from the old Act. Due to this, the same legal language is still being used. The Income Tax Department is constantly taking a friendly approach with taxpayers. A comprehensive review of the Income Tax Act is being done. All these things will be included in this review and efforts will be made to make the tax notice in common spoken language.
Action started
Ravi Agarwal further said that we have formed an internal committee for the comprehensive review of the Income Tax Act. The committee has started working. Agarwal said that we hope that the work will be completed within the 6-month time period for the review.
Finance Minister’s advice
The country’s Finance Minister Nirmala Sitharaman has advised the Income Tax officials to use easily understandable language while sending notices or any letter to taxpayers. She said that the use of more technical and legal language causes difficulty in responding to taxpayers.
Income Tax officials should be very careful while communicating with taxpayers and try to make their approach friendly. About 72% have shifted from the old income tax system to the new tax system. This in itself shows the success of the new tax system. Last year, 58.57 lakh new taxpayers have filed returns.
