Simplified Tax Act Aims to Clarify Compliance for Common Taxpayers

The newly formulated Income Tax Act, featuring simplified language, aims to make tax laws more accessible for common taxpayers. The act eliminates complicated legal jargon, offering clarity and certainty. It also addresses digital asset regulations, with a rollout planned for February 26, 2026.

In a transformative move for India's tax system, the recently released Income Tax Act promises to simplify the often convoluted processes of tax compliance. As per RN Parbat, Member (Legislation) at the Central Board of Direct Taxes (CBDT), the revamped act uses simplified language, aiming to make tax provisions comprehensible for the average taxpayer.

During an interview with ANI, Parbat highlighted the elimination of archaic jargon and the integration of user-friendly tabular formats. These changes are expected to provide taxpayers with greater certainty and reduce the chances of legal disputes. Parbat credited Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their leadership in fostering this overhaul.

A dedicated committee was formed on February 13, coinciding with the introduction of the Bill in Parliament, tasked with simplifying and creating new rules and forms. The committee proposed several modifications, many of which were incorporated into the legislation. The new rules and forms are set for deployment by the end of the year, preceding the Act's effective date of February 26, 2026.

(With inputs from agencies.)