CBDT Invites Industry Feedback on New Income Tax Bill

CBDT Chief Ravi Agrawal invites industry suggestions on the new income tax bill, poised to replace the 1961 act with simplified language and international standards. Approximately 90 lakh updated returns yielded Rs 8,500 crore in revenues over three years. The tax department's new 'PRUDENT' approach emphasizes a user-friendly, data-driven and transparent system.

The Chief of the Central Board of Direct Taxes (CBDT), Ravi Agrawal, on Monday called upon industry stakeholders to contribute their suggestions on the forthcoming income tax bill, set to be introduced in Parliament this week.

This legislation, designed to supersede the 1961 Income Tax Act, has been drafted in just six months with a focus on simplicity and compliance. Noteworthy, Agrawal emphasized that the bill aligns with global standards and eliminates obsolete provisions to reduce its bulk.

Agrawal highlighted that the tax department is embracing a 'PRUDENT' methodology—Proactive, Rule-based, User-friendly, Data-driven, Enabling environment, Non-intrusive, and Transparent. This reflects a substantial shift from its former 'adversarial' tactics towards a more engaging approach.