The review builds on earlier efforts, such as the Direct Taxes Code (DTC) proposed by the UPA government in 2009, which was revised multiple times but lapsed in 2014. 
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The review builds on earlier efforts, such as the Direct Taxes Code (DTC) proposed by the UPA government in 2009, which was revised multiple times but lapsed in 2014. The government has initiated a comprehensive review of the Income Tax Act, inviting public input on key areas for reform.
The Central Board of Direct Taxes (CBDT) announced that it has formed an internal committee to focus on simplifying language, reducing litigation and compliance burdens, and removing obsolete provisions. This move signals a fresh push to make tax laws more accessible and easier to navigate for both individuals and businesses.
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To facilitate public participation, the CBDT has launched a dedicated webpage on the e-filing portal. Citizens can submit their suggestions by visiting the link: https://eportal.incometax.gov.in/iec/foservices/#/pre-login/ita-comprehensive-review.
The portal requires users to enter their mobile numbers and validate them via an OTP. Suggestions should be detailed, specifying the relevant provision of the Income-tax Act, 1961 or Income-tax Rules, 1962, including section, sub-section, clause, rule, sub-rule, or form number, under the four focus areas: simplification of language, litigation reduction, compliance reduction, and removal of obsolete provisions.
This initiative aligns with Finance Minister Nirmala Sitharaman’s 2024-25 Union Budget announcement, where she outlined a clear goal of reducing disputes and litigation while enhancing clarity within the tax regime. "This will provide tax certainty to taxpayers and reduce the demand caught up in litigation," Sitharaman had stated, with a completion target set for January 2025.
The review builds on earlier efforts, such as the Direct Taxes Code (DTC) proposed by the UPA government in 2009, which was revised multiple times but lapsed in 2014. This latest push offers a fresh opportunity to simplify the tax code, with concrete results expected within a defined timeframe.
Already, the government has implemented reforms through the Finance Bill 2024, including changes to the capital gains tax framework. The updated system provides taxpayers options that balance lower rates with the retention of indexation benefits, addressing discrepancies in tax treatment across various asset classes.
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