Budget 2025 Expectation: The government is preparing to take a big step to simplify the process of filing ITR. According to media reports, a proposal to amend the Income Tax Act 1961 may be introduced in Budget 2025.
This change will focus on simplifying the language and organizing the information through formulas and tables. However, there will be no changes to tax rates and policies.
Sources familiar with the matter say that the amended law will be released for public consultation by mid-January. After this, it can be included in the budget to be presented in February.
Big changes are possible
Some major changes can be made under this proposed change. Such as replacing the complex income computation structure with a formula based structure. Replacing the current assessment year and financial year with a single tax year. Tabular description for identical taxpayers. Reducing the number of extra forms with tax returns and making them available online.
However, the Finance Ministry has refused to comment on this immediately. Experts believe that the purpose of this step is to reduce the bureaucratic burden on taxpayers. This step of the government will not only provide relief to taxpayers but will also increase transparency in the income tax system.
The number of tax disputes is more than Rs 10 lakh crore
India has long been trying to modernise its tax laws. The number of tax disputes was set to double to Rs 10.5 lakh crore by the end of FY23. Finance Minister Nirmala Sitharaman announced in July that a comprehensive review of tax laws would be completed within six months to make the rules more taxpayer-friendly.
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