New Delhi, Feb 3 (PTI) – The Central Board of Direct Taxes (CBDT) Chairman, Ravi Agrawal, has invited industry stakeholders to submit their suggestions on the new Income Tax Bill, which is set to be tabled in Parliament this week.
The proposed legislation aims to replace the six-decade-old Income Tax Act of 1961. According to Agrawal, the bill has been drafted in just six months, focusing on simplifying tax compliance by using clear and accessible language. The new framework also aligns with international standards, making it more user-friendly for taxpayers.
In her Budget speech, Finance Minister Nirmala Sitharaman announced an extension of the time limit for filing updated ITRs from the current two years to four years—a move aimed at providing taxpayers greater flexibility in compliance.
He outlined the ‘PRUDENT’ approach of the department:
With the bill set for discussion in Parliament this week, industry players are expected to engage actively in shaping the new tax regime.
The proposed legislation aims to replace the six-decade-old Income Tax Act of 1961. According to Agrawal, the bill has been drafted in just six months, focusing on simplifying tax compliance by using clear and accessible language. The new framework also aligns with international standards, making it more user-friendly for taxpayers.
Key Features of the New Income Tax Bill
- The bill eliminates outdated provisions, making it more concise and easier to navigate.
- Industry representatives have been encouraged to provide feedback once the bill is introduced, with Agrawal assuring that their suggestions will be considered.
Updated Income Tax Returns (ITR-U) Boost Revenue
Discussing updated income tax returns (ITR-U), Agrawal revealed that over the past three years, 90 lakh updated returns have been filed, generating an additional ₹8,500 crore in revenue.In her Budget speech, Finance Minister Nirmala Sitharaman announced an extension of the time limit for filing updated ITRs from the current two years to four years—a move aimed at providing taxpayers greater flexibility in compliance.
A Shift in Tax Department’s Approach
Highlighting the evolving role of the Income Tax Department, Agrawal stated that it is moving away from an adversarial approach and adopting a more participatory framework.He outlined the ‘PRUDENT’ approach of the department:
- P – Proactive & Professional
- R – Rule-Based
- U – User-Friendly
- D – Data-Driven
- E – Enabling Environment
- N – Non-Intrusive
- T – Transparency
With the bill set for discussion in Parliament this week, industry players are expected to engage actively in shaping the new tax regime.
