look news india
Major changes can be made in the income tax rules in the coming days. The government has formed a panel to simplify the direct tax rules. It is being said that many rules can be abolished based on the suggestions of the panel.
More than 90 sections became irrelevant
According to the report published in Business Standard, the panel believes that more than 90 sections of the Income Tax Act 1961 have become irrelevant. According to the report, this has come to light in the discussions held in the last few days under the supervision of Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal. It has been believed in the discussion that more than 90 sections have lost their relevance over time. This claim has been made in the report quoting officials associated with the discussion.
Panel to simplify taxation
This report has come at a time when the Finance Ministry is trying to simplify the income tax rules. For this, the Revenue Department of the Finance Ministry has formed a panel under the leadership of Chief Income Tax Commissioner VK Gupta. The panel has been given the task of giving suggestions to simplify the decades-old Income Tax Law.
Preliminary discussion on exemptions and deductions
It is being told that the initial discussion in the panel is focused on issues such as exemptions under the Income Tax Act and income tax appeals. The panel is focused on rationalizing income tax exemptions, bringing the calculation methods to the level of global standards and making the appeal system less tedious. The report quoted an official as saying that the panel is focusing on exemptions and deductions including special economic zones, telecommunications, capital gains.
The changes have already begun
Let us tell you that the government has started extensive changes in the income tax system with the new tax system. The government is trying to simplify the system of direct taxation i.e. tax levied on income, in which deductions and exemptions are minimal. If this happens then it will be easy for taxpayers. There is a provision of many types of exemptions and deductions in the already existing old tax system. The government believes that exemptions and deductions complicate the old tax system. For this reason, a new tax system has been introduced, in which there is provision for fewer exemptions and deductions, but taxpayers get the benefit of comparatively lower tax rate.
