CBDT Prepares for Landmark Transition to New Direct Tax Law

CBDT Chairman Ravi Agrawal urges the Income Tax Department to prepare for the new direct tax law taking effect from April 1. New rules and procedures are being formulated to replace the Income Tax Act of 1961. Agrawal emphasizes clarity, purpose, and technology for successful implementation.

CBDT Chairman Ravi Agrawal has called upon the Income Tax Department to gear up for the imminent implementation of a new direct tax law scheduled to take effect from April 1. In a message to his staff, Agrawal stressed the importance of preparedness, clarity, and understanding among tax officials as they enter this transformative phase.

The Central Board of Direct Taxes (CBDT) is currently formulating new rules, procedures, and forms to facilitate the transition from the Income Tax Act of 1961 to the updated framework. This shift marks a significant milestone in the department's history, with technology playing a pivotal role in aligning operations with the new law's objectives.

Agrawal highlighted the need for active involvement in training and skill-building to adapt to evolving tax administration, which now focuses on facilitation, trust, and service beyond mere revenue collection. The NUDGE framework will guide tax officials in enhancing taxpayer communication and fostering compliance. As the new law comes into effect, the department is poised to navigate complex financial landscapes with diligence and integrity, strengthening the nation's financial architecture.

(With inputs from agencies.)