gfiles magazine

April 13, 2017

Reforming the Income-Tax Act

IN an era of voluntary compliance under the Income Tax Act, 1961, where nearly 99 per cent of income-tax returns are being accepted without any scrutiny, the tax law has to be simple, easily understandable and concise for compliance regarding disclosure of incomes and payment of tax. For this, the tax law, rules and returns, to be filed, need to have the above stated attributes. But, successive governments, including the present one, do not seem to believe in this thinking. Each year’s Finance Act add, modify and replace the sections of the IT Act in a big way as could be seen from the following numbers of clauses in the Finance Bills for the last four years.

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