Parliament will reconvene on March 10 and will sit through April 4.Pursuant to the Budget announcement by Sitharaman for a comprehensive review of the I-T Act, 1961, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers.Also, 22 specialised sub-committees were established to review various aspects of the Act.Public inputs and suggestions were invited in four categories – simplification of language, litigation reduction, compliance reduction, and redundant/obsolete provisions.The Income Tax Department has received 6,500 suggestions from stakeholders on review of the Act.Sources said the provisions and chapters will be significantly reduced and the obsolete provisions will be deleted.The Income Tax Act, 1961, which deals with the imposition of direct taxes – personal I-T, corporate tax, securities transaction tax, besides gift and wealth tax – currently has about 298 sections and 23 chapters.”The effort is to cut down the volume by about 60 per cent,” the source added.Sitharaman had said in her July, 2024, Budget speech that the purpose of the review is to make the Act concise, lucid, easy to read and understand.This will reduce disputes and litigation, thereby providing tax certainty to taxpayers.It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months, she had said.
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