The New Income Tax Act: The new Income Tax Act is promising to bring a major relief for all the commoner and the Taxpayer and also to give all of them a bumper benefit along with it. The Government is soon going to present the New Tax to Lok Sabha, which will be eventually passed after a series of discussions. This long-awaited Bill aims to simplify Tax filing and remove all the outdated legal terms.
One of the major highlights of this change is all the complex terminology which have been there till now from the British rule will also be in a much simpler way so that it is readable for the common person as well, eventually making tax filing a much simpler process now onwards. Apart from this, one of the major challenges that a commoner faced was responding to the notices from the Income Tax Department. It will also be a much simpler and straightforward process, reducing the stress and confusion for the Taxpayer.
A smoother process and Fewer Tax Disputes
After the passing of this new tax bill, there will be an estimated decrease in the disputed cases by around 40%. The new bill has already been approved by the Government cabinet, and very soon, it will be presented in Lok Sabha.
The majority of these disputes are linked to the old tax bill, and once the new tax bill is passed, then it will eventually reduce the number. Currently, there are over 7 Lakhs cases related to Income Tax, which are pending in various Income tax Appellate tribunals.
Apart from this, there is a majority of cases also pending at the higher court and with the Supreme Court. As per the sources, there is a large portion of cases that are linked with the old provision which are no longer active. The new bill will eliminate these cases with few underwritten replies or penalties.
Addressed Common taxpayer Challenges
Suppose we believe the sources, as per the officials linked with the Income Tax Department. There are many cases that have been there as the taxpayer is receiving the notice of the laws which are not even in existence, yet it is not updated in the law book. Over the years, the government has removed several laws such as Gift tax, Benefit tax, tax on cash transactions, and many more. But these are still in law in one way or the other. This has caused several notices stating that the taxpayer has not provided the correct information in ITR, leading to unnecessary legal battles.
With the new Income Tax Act, these inconsistencies will be fixed. The end goal of creating this new Act is to create a more efficient and transparent tax system where the taxpayer no longer has to worry about the old laws and rules.
As the bill moves forward, taxpayers can look forward to a much simpler and less stressful tax filing experience.