The primary objective of the committee is to review and simplify the Act

The Central Board of Direct Taxes ( CBDT ) has established an internal committee to review the Income Tax Act of 1961. Led by VK Gupta, Chief Commissioner of Income Tax, the committee was announced by Union Finance Minister Nirmala Sitharaman during her July 2024 Budget speech with an aim to conclude the review within six months. The New Income Tax Act replacing the old will be introduced soon, declared FM on the celebration of the 165th year of income tax on 21st August 2024. The Union Finance Minister Nirmala Sitharaman, in the Budget 2024 has announced the scope of a new income tax act or code making it simple. Read More: New Income Tax Act to be Introduced in Six Months, declares FM The primary objective is to streamline and simplify the Act, making it more concise and comprehensible. This initiative seeks to minimise disputes and litigation while enhancing tax certainty for taxpayers. Get a Copy of Income Tax Act, Click here “The objective is to make the Income Tax Act clearer, more concise, and easier to understand. This will reduce disputes and litigation, providing taxpayers with greater tax certainty,” Sitharaman stated. Officials have indicated that the committee’s focus will include eliminating outdated terminology and incorporating international best practices to improve compliance. Additionally, an official confirmed that the committee is currently evaluating each section’s relevance and will soon prepare a draft for public consultation to gather stakeholder input. During a post-budget discussion, Revenue Secretary Sanjay Malhotra clarified that the review does not aim to create a new direct tax code but rather to conduct a comprehensive assessment of the existing legislation. Get a Copy of Income Tax Act, Click here Malhotra further explained that the internal committee of the tax department will draft the initial revised and simplified version of the Income Tax law based on their findings