New Income Tax Act: The government will make a new one, giving people bumper benefits. The central government will soon present the New Tax Bill in the Lok Sabha, which will be passed after discussion. The new act will be shortened easily for the commoner and the taxpayer. It will also simplify the terminology. Most importantly, filing tax returns will also become very easy with the new act.
Responding to the Income Tax Department’s notice will also become very easy. Some heavy words from British rule will be removed. After passing the new tax bill, disputed cases may decline by 40 per cent. The government cabinet has approved it and will soon be presented in the Lok Sabha.
There will be a decrease in disputed cases.
If the new tax act is implemented, there may be a significant decline in disputed cases. If people with financial knowledge are to be believed, the process will become straightforward and transparent with the new law. There will also be a decrease in litigation across the country. Recently, more than seven lakh cases related to income tax have been filed with various income tax appellate tribunals.
Apart from this, a large number of cases are also pending at the higher and Supreme Court levels. If sources are to be believed, more than 40 are pending due to the provisions given under the old Act. The new law can eliminate these cases with underwritten replies or penalties.
Where do taxpayers face problems?
Suppose the officials associated with the Income Tax Department are to be believed. In that case, the government has removed some current law rules by issuing separate orders in a few years. These are still in the law book. Because of this, often, if a taxpayer does not give correct information in the ITR, the department sends notices even under the abolished provisions.
In such a situation, taxpayers file appeals, which drastically increases the number of cases. The government has abolished many levies, including gift tax increases, benefit ta,x and tax cash transactions. However, some provisions remain in writing, which will be removed with the new Act.