Streamlining Tax Compliance: The New Income Tax Act 2025 Unveiled
The new Income Tax Act, 2025, aims to simplify tax provisions and reduce compliance burdens. Replacing the old 1961 Act, it features fewer rules and forms, prefilled smart forms, and the removal of redundant rules. Stakeholder feedback is being solicited ahead of its implementation in April 2025.
- Country:
- India
The Income Tax Department unveiled draft rules and forms for the new Income Tax Act, 2025, on Saturday. This new legislation aims to simplify tax provisions and reduce compliance burdens for taxpayers.
Set to replace the existing 1961 Income Tax Act, the new regulations are slated to come into effect on April 1, 2025. The department has invited comments from stakeholders by February 22, 2025, before notifying the finalized rules and forms.
An official statement emphasized improvements in form standardization and smart features, streamlining the process and enhancing user experience. Highlighting reforms such as revisiting archaic thresholds and defining accountant qualifications, experts like Sandeepp Jhunjhunwala see this as a progressive legislative move.
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