New Income Tax Bill: The authorities introduced in July 2024 its intention to conduct a radical overview of the Income-tax Act, 1961. The main goal is to rework the Income Tax Act 1961 right into a extra simple, clear and complete doc, aiming to minimise disputes and supply taxpayers with larger tax certainty.
KPMG in India did a survey in January 2025 to assemble business views on this simplification initiative. The survey encompassed responses from over 200 executives throughout numerous sectors, together with Industrial Manufacturing, Automotive, Financial Services, Consumer Markets, Infrastructure, Energy and Natural Resources, Technology, Life Sciences, Healthcare and Pharma, amongst others.
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The survey revealed vital findings throughout a number of areas:
1. Priority Areas for Tax Simplification
84% of respondents prioritised dispute/litigation simplification.
64% advocated for simplifying TDS provisions, at present spanning 30+ transaction classes.
Other priorities included switch pricing (50%), capital good points taxation (43%), and enterprise revenue calculation (38%).
2. Interpretation & Tax Law Certainty
96% endorsed making a authorities-revealed revenue-tax commentary, much like the OECD mannequin.
93% supported direct incorporation of helpful clarifications from tax circulars/notifications into the Act.
3. Dispute Resolution & Litigation Reduction
Current pending tax circumstances exceed 6 lakh, with 5.5 lakh at CIT(Appeals) stage.
69% supported introducing mediation/arbitration schemes.
62% favoured permitting tax authorities to enchantment DRP choices.
98% requested necessary timelines for CIT(A) enchantment disposal.
4. Compliance Enhancement
61% most popular a hybrid mannequin for tax official interactions.
35% supported full faceless transition, whereas 4% most popular conventional interactions.
87% supported eliminating necessary TDS certificates issuance.
64% advocated for Form 26AS-based mostly TDS credit score allocation.
5. Corporate Tax Structure
58% supported company tax price discount.
34% had been glad with present charges, while 7% sought reductions for non-resident corporations.
43% acknowledged advantages of the simplified tax regime.
6. Timeline Improvements
82% requested prolonged deadlines for belated/revised returns.
94% steered revising switch pricing protected harbour guidelines.
7. Faceless Assessment Challenges
41% reported no discount in aggressive assessments below faceless system.
60% steered eradicating CIT(A) appeals from faceless mode.
The Cabinet has given its approval to the New Income Tax Bill on Friday, which is able to supersede the Income Tax Act 1961 that has served the nation for 60 years. Following its introduction in Parliament, the invoice shall be forwarded to the Finance Standing Committee for thorough examination.
The preliminary part of the continued funds session will finish on February 13, earlier than reconvening on March 10 and working by means of April 4.
During the Budget 2025-26 presentation, Finance Minister Nirmala Sitharaman confirmed that the New Income Tax Bill could be tabled within the current parliamentary session.
