Income Tax Act Review to Conclude in 6 Months, Confirms CBDT Chairman

Income Tax Act Review to Conclude in 6 Months

Income Tax Act Review to Conclude in 6 Months: On Wednesday, Ravi Agrawal, Chairman of the CBDT, said that the review of the Income Tax Act of 1961 will be finished in six months as planned.

Union Finance Minister Nirmala Sitharaman said last month in her Budget speech that the country's direct tax law would be looked at and made easier to understand. The work would be done in six months.

Agrawal added, “We have an important task on hand, and that is the comprehensive review of the Income Tax Act, 1961. The purpose is to make the Act concise, lucid, and easy to read and understand. This exercise is aimed to reduce litigation and provide tax certainty to taxpayers.”

As the head of the Central Board of Direct Taxes (CBDT) put it, "we have taken the assignment in a mission mode." The work was hard, but it changed things.

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About the Income Tax Act of 1961

The Income Tax Act of 1961 is the most important law in India's tax structure. It lists the laws, rules, and steps that must be followed to receive, administer, and get back the country's income tax. Among other things, the Act sets out a complete system for taxation, including:

• The tax is levied on the total income of everyones including individuals, and companies.
• There are five main types of income: salaries, real estate, business or job, capital gains, and other sources.
• The Act sets different tax rates for people with different amounts of income and for different types of workers.
• Some tax breaks and deductions are applicable to lower your taxable income.
• The Act showcases the steps for assessment, filing of returns, and collection of taxes.
• If not in compliance with the Act then you will be levied with penalties and interest.

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