Income Tax Department Embarks on New Era with Draft Rules for 2025 Bill

The Income Tax department is currently in the process of developing rules, forms, and procedures under the proposed Income Tax Bill, 2025. This initiative aims to replace the longstanding direct tax legislation that has been in place for over sixty years. CBDT Chairman Ravi Agarwal shared these updates during the 166th Income Tax Day event in the capital.

Commitment to Clarity and Simplicity

Agarwal emphasized that the new framework is designed with the taxpayer in mind, focusing on clarity, simplicity, and convenience. "Work is already underway to shape its rules, forms, and procedures, a critical next step... These will define how the law functions and practice," he stated, expressing confidence in the department's ability to meet these objectives.

Technology-Driven Tax Compliance

Highlighting the department's innovative use of technology, Agarwal pointed out how data analytics is facilitating voluntary disclosures. The 'Nudge campaign', leveraging behavioral insights and transactional data, aims to detect discrepancies and encourage taxpayers to voluntarily correct their filings. "This is enforcement with empathy," Agarwal remarked, showcasing the department's evolving approach towards fostering trust and compliance.