The Central Board of Direct Taxes (CBDT) has launched a new utility on the e-filing portal, inviting inputs and suggestions from taxpayers and other stakeholders on the provisions of the Bill.
The Income Tax Bill 2025: A Step Toward Tax Reforms
The Income Tax Bill, 2025 was introduced in Parliament with the aim of overhauling and modernizing the taxation system, bringing it in line with global best practices. The Bill is currently under detailed examination by the Select Committee, which is tasked with reviewing its provisions in greater depth. The consultative process is a crucial step in ensuring that the reforms are comprehensive, transparent, and cater to the needs of all stakeholders.
The CBDT, as part of this consultative process, has invited stakeholders to submit their suggestions on the provisions of the Bill. The suggestions will be reviewed by the Select Committee before the final implementation of any changes. This engagement reflects the government’s commitment to creating a more inclusive and efficient tax system that serves the interests of both taxpayers and the administration.
A New Utility for Stakeholder Submissions
To facilitate the submission of inputs, the CBDT has launched a utility on the Income Tax e-filing portal. This utility, accessible from March 8, 2025, allows stakeholders to submit their suggestions through an OTP-based validation process, ensuring the authenticity of inputs. The portal can be accessed through the following link:
Income Tax e-Filing Portal – Stakeholder Submissions
Once on the portal, users are required to enter their name and mobile number for validation via OTP, ensuring a seamless and secure process. Stakeholders can then provide their suggestions, which should clearly reference the relevant provision of the Income Tax Rules, 1962. Suggestions must be submitted under one of the four categories outlined by the CBDT:
Simplification of Language: Suggestions to make the language of the Income Tax Rules clearer and more understandable for taxpayers.
Reduction of Litigation: Inputs aimed at identifying provisions that may cause litigation or confusion, with a view to reducing the number of disputes between taxpayers and the tax authorities.
Reduction of Compliance Burden: Ideas on how to reduce the compliance burden on taxpayers, making the filing process more straightforward and less time-consuming.
Identification of Redundant/Obsolete Rules and Forms: Recommendations for identifying outdated or redundant rules and forms that no longer serve their purpose and can be eliminated.
Aiming for Simplicity and Transparency
The primary objective behind this initiative is to make tax compliance simpler, more transparent, and efficient. By engaging stakeholders and collecting feedback, the CBDT aims to identify areas where existing rules and forms can be streamlined. This process is intended to reduce the compliance burden on taxpayers, minimize errors, and improve taxpayer understanding of the tax process.
The simplification of tax laws is also expected to enhance transparency and reduce administrative burdens, creating a system that is both easier to navigate and more equitable for all parties involved. By identifying obsolete or redundant rules and forms, the government hopes to make the system more efficient, cutting down on unnecessary paperwork and ensuring that only relevant and effective provisions remain.
