Simplified I-T Act likely to take longer, CFO News, ETCFO
NEW DELHI: The Income-Tax Act review, announced in the budget in July, could take longer than the anticipated six months, with an internal panel of the Central Board of Direct Taxes examining recommendations from 22 subcommittees and the public. The panel may take another four to five months to review the suggestions and give its final report on possible changes, said officials.
The government, however, could onboard some simplification measures in the budget for the next financial year in February, they said.
“The committee is re-examining suggestions received from the subcommittees… This process may take some time,” said a senior official, who did not wish to be identified
The government had invited public inputs and suggestions for simplification of language, litigation reduction, compliance reduction and redundant or obsolete provisions.
Finance minister Nirmala Sitharaman, earlier this month, chaired a review meeting on the progress so far.
Reform of dispute resolution mechanisms, simplification of litigation management, overhaul of rules dealing with transfer pricing and tax deduction at source are some of the top focus areas in the simplification exercise, the official said, adding that wider consultation is needed with the law ministry on provisions of the Benami and Black Money Acts. “Some provisions require a deeper examination. Also, there are areas where there are conflicting views within subcommittees,” the official said.
