The Central Board of Direct Taxes (CBDT) on Tuesday asked stakeholders to continue submitting their suggestions on the new Income Tax Bill, 2025, which will be compiled and sent to a select committee of Parliament for review.
In a release, the CBDT said an effort is underway to collect inputs and work on simplification of the associated income tax rules and forms. “The objective of this initiative is to enhance clarity, reduce the compliance burden, and eliminate obsolete rules, making tax processes more accessible for taxpayers and other stakeholders,” it said.
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The parliamentary panel has invited suggestions from stakeholders on the new Bill, which was introduced in Parliament last month.
According to the CBDT release, additionally, streamlining the rules and forms aims to simplify tax compliance, improve taxpayer comprehension and ease of filing, lower administrative burdens and errors, and enhance transparency and efficiency.
The select committee has invited the suggestions from stakeholders in the following categories: simplification of language, reduction of litigation, reduction of compliance burden, and identification of redundant/obsolete rules and forms.
Experts say that the committee’s effort to engage with stakeholders will help identify practical challenges and ensure that the rules effectively serve their purpose. Well-structured rules and forms should simplify compliance while staying aligned with legislative intent, they say.
Samir Kanabar, tax partner, EY India, said: “Providing clear illustrations and best-practice examples can further support taxpayers, reducing litigation and making compliance more straightforward. Additionally, appropriate measures will also have to be taken to update the technology/portal in a tax user friendly manner.”
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Gouri Puri, partner, Shardul Amarchand Mangaldas & Co, noted that this (engagement with stakeholders) is an important opportunity to address the nits in the new Bill. “For instance, the rule against cascading effect of taxes on dividends in multi-tiered corporate structures should be extended to companies claiming the concessional corporate tax rate of 22% which is currently the case but seems to be overlooked under the new Bill.”
Sumit Singhania, partner, Deloitte India, said, “Broader theme of suggestions incoming from stakeholders would be to enable simplification of administrative rules from implementation standpoint and to the extent possible,
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