Empathetic Enforcement: Shaping the Future of India's Income Tax System

The Income Tax department is formulating rules for the new Income Tax Bill, 2025, which aims to modernize tax laws. CBDT Chief Ravi Agarwal emphasizes 'enforcement with empathy,' enabling taxpayers to update finances voluntarily. A parliamentary panel has reviewed the bill, urging modifications before its implementation.

The Income Tax department is diligently working on the framework of rules, forms, and procedures for the upcoming Income Tax Bill, 2025, aimed at overhauling the longstanding direct tax law.

At the 166th Income Tax Day, CBDT Chief Ravi Agarwal highlighted the department's approach of 'enforcement with empathy,' encouraging taxpayers to proactively manage their financial updates.

Introduced to Parliament on February 13, 2025, the bill received feedback from a parliamentary panel, which recommended several revisions. Agarwal stressed the department's commitment to building trust and voluntary compliance through data analytics and innovative campaigns.

(With inputs from agencies.)