Government Set to Surpass Tax Collection Targets Amidst Income Tax Act Overhaul

The government is expected to surpass its Rs 22.07 lakh crore target for direct tax collections this fiscal year. Taxpayers who haven't declared foreign assets have until December 31 to amend their filings. An income tax law review aims to simplify legal language and reduce disputes.

The government is poised to exceed its direct tax collection target of Rs 22.07 lakh crore for the current fiscal year, announced Ravi Agarwal, chairman of the Central Board of Direct Taxes (CBDT). This optimistic outlook stems from a noteworthy rise in both corporate and non-corporate tax collections.

Taxpayers have been given until December 31 to revise their income tax returns if they've neglected to declare foreign income or assets, according to Agarwal. The tax department is actively contacting such individuals through SMS and email, emphasizing compliance before the deadline arrives.

The CBDT's ongoing public consultation for the Income Tax Act review has garnered over 6,000 suggestions. The primary goals are to simplify the law's language, reduce litigation, and enhance tax clarity. This initiative supports the government's broader aim to modernize the tax system, as outlined in the recent budget.

(With inputs from agencies.)