Changes in Rate not a part of Review of Income Tax Act: Govt Official:

Changes in Rate not a part of Review of Income Tax Act: Govt Official The Income Tax Review Committee, which is tasked with revamping the decades-old rules of the country, will not propose changes to tax rates, instead focusing on streamlining the Income Tax Act to make it more clear and user-friendly, according to a senior government official. The review committee intends to submit all 23 reports on each chapter of the Income Tax Act of 1961 by mid-December, according to the source. "The review committee will not recommend any rate changes. They are evaluating each Act with the goal of simplifying it, making it more succinct, user-friendly, and easier to read," the official said on condition of anonymity. The sub-committees of the panel are working hard to complete all of the reports. So far, eight reports have been filed to the Central Board of Direct Taxes (CBDT). The Union Budget, which is generally presented on February 1, is expected to embrace a simplified Income Tax Act. "The reports are being filed and discussed concurrently by the CBDT. The official stated that once the review is completed, the final compilation would be forwarded to the finance minister, "said the official. In her July budget, Finance Minister Nirmala Sitharaman announced a review of the IT Act's 298 sections. At this point, the review is not designed to change or simplify the law's complexities. Instead, it seeks to rewrite complicated provisions, erase obsolete language, and reduce redundancies. "Some provisions have lost their utility, such as deductions that are no longer applicable but remain in the act. These will be addressed," the official stated.

Report of Committee

The committee, chaired by Chief Commissioner of Income Tax VK Gupta, is made up of sub-committees and working groups, each of which focuses on a certain portion of the act. These subcommittees are looking at compliance, Section 10 exemptions (such as the dwelling rent allowance and the leave travel allowance), trust income (under Sections 11, 12, and 13), penalty provisions, redundancies, and TDS/TCS. Each sub-committee is supervised by a principal commissioner of income tax and includes more than 80 officials. The committee has also developed an online platform where the public can submit suggestions. "This is about streamlining the text without changing the provisions. We want to make the law more accessible and understandable to taxpayers," the official stated.