New Income Tax Act Expectations: Income Tax Notices to be Issued in Common Speaking Language
This committee has already begun its work, with a targeted completion within six months, as per sources
The New Income Tax Act is anticipated to have provisions that enable the issuance of Income Tax Notices in a more spoken language, that is less legally intriguing to the assessees (taxpayers). The Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal recently revealed that an internal committee has been established to conduct a comprehensive review of the Income Tax Act, 1961. Get...
The New Income Tax Act is anticipated to have provisions that enable the issuance of Income Tax Notices in a more spoken language, that is less legally intriguing to the assessees (taxpayers).
The Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal recently revealed that an internal committee has been established to conduct a comprehensive review of the Income Tax Act, 1961.
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Agarwal emphasised that despite only 0.1% of taxpayers receiving tax notices, the department is committed to implementing the Finance Minister's guidance.
When questioned about the language used in tax notices, Agarwal acknowledged that the Income Tax Act, which dates back to 1961, still employs legal language derived from older statutes. However, he assured that efforts are underway to revise this language to make it more accessible to the common taxpayer.
This initiative is part of the broader review of the Income Tax Act, with a focus on making the department’s communication more taxpayer-friendly.
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Finance Minister Nirmala Sitharaman has urged Income Tax officials to use simpler, more understandable language in their communications. She noted that overly technical or legal language can create difficulties for taxpayers in responding to notices.
The Minister stressed the importance of a friendly and clear approach when dealing with taxpayers.
The CBDT Chief Agarwal also highlighted the success of the new tax regime, noting that around 72% of taxpayers have transitioned from the old system. Additionally, last year saw 58.57 lakh new taxpayers filing returns, further demonstrating the effectiveness of the new system.
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