Skip to content
  • Facebook
  • X
  • Linkedin
  • WhatsApp
  • YouTube
  • Associate Journalism
  • About Us
  • Privacy Policy
  • 033-46046046
  • editor@artifex.news
Artifex.News

Artifex.News

Stay Connected. Stay Informed.

  • Breaking News
  • World
  • Nation
  • Sports
  • Business
  • Science
  • Entertainment
  • Lifestyle
  • Toggle search form
  • Endo retirement forces midfield rethink for Japan ahead of Dutch meeting
    Endo retirement forces midfield rethink for Japan ahead of Dutch meeting Sports
  • U.S. rejects WHO non-communicable diseases declaration: Robert F. Kennedy Jr.
    U.S. rejects WHO non-communicable diseases declaration: Robert F. Kennedy Jr. World
  • S.P. Velumani | From loyalist to rebel
    S.P. Velumani | From loyalist to rebel Nation
  • Defence Secretary And UK’s Pick For NATO Chief Ben Wallace Resigns
    Defence Secretary And UK’s Pick For NATO Chief Ben Wallace Resigns World
  • L&T Vyoma breaks ground for 40 MW green, AI-ready data centre in Navi Mumbai
    L&T Vyoma breaks ground for 40 MW green, AI-ready data centre in Navi Mumbai Business
  • Former AIADMK MP P.R. Sundaram no more
    Former AIADMK MP P.R. Sundaram no more Nation
  • Access Denied
    Access Denied Nation
  • Investors Lose Rs 7.59 Lakh Crore Amid Escalating Tensions In Middle East
    Investors Lose Rs 7.59 Lakh Crore Amid Escalating Tensions In Middle East Business
Simplifying the mammoth Income Tax Act in six months

Simplifying the mammoth Income Tax Act in six months

Posted on August 31, 2025 By admin


How did the Income Tax Department complete the “mammoth” task of rationalising and simplifying the huge Income Tax Act 1961 in just about six months, and then implementing the Select Committee’s voluminous suggestions in just one month? By cramming in 75,000 man-hours of work in that time and even putting probationers on the job, that’s how. 

The result was the hugely condensed and significantly more user-friendly Income Tax Act 2025.

“The announcement by the honourable Finance Minister was made on July 23, 2024 that within six months the entire process of simplification of the law, to make it more lucid, clear, and precise will be achieved,” R.N. Parbat, the Central Board of Direct Taxes (CBDT) member in charge of legislation, told The Hindu. “The task was given to the Department of Revenue and the CBDT. It was to be done in-house.” 

By August 14, the drafting committee under Chief Commissioner of Income Tax V.K. Gupta was formed, and that’s when the work began in earnest. Subcommittees were formed to look at every aspect of the law with a view to remove redundant sections and review the rest.

As the scope of the work became more clear — the original 1961 Act had 819 sections — the number of subcommittees also grew. By the end of it, there were 26 different subcommittees, according to Mr. Parbat. 

Apart from this, the process also incorporated a review committee that was tasked with reviewing the work done by the drafting subcommittees. 

“Once the review committee completed its work, it came to the Tax Policy and Legislation [TPL] division of the CBDT,” Mr. Parbat explained. “And after that, when a draft was formed, it was reviewed by another set of senior officers of the CBDT.” 

Throughout this, the Revenue Secretary and the Finance Minister took regular briefings with the drafting committee and the TPL, while the Ministry of Law was also consulted.  

“The work was broadbased, with more than 150 officers of the Department working on it,” Mr. Parbat said. “That included our Chairman, who was from the 1988 batch. At the same time, the junior-most person on the team was from the 2018 batch. Officers from all over India were selected for this purpose. We also involved our probationers who were undergoing training in Nagpur involved in the process.”

The draft of the Bill was laid before Parliament on February 13, 2025, six months after the drafting committee was formed. The number of chapters has been slashed from 47 to 23 and the number of sections from 819 to 536.

The new Bill included 57 tables as explanations, up from 18 and 46 formulae compared to the previous six. The language was greatly simplified, jargon and archaic words such as ‘notwithstanding’ were removed as far as possible, and examples were provided where needed.

To put this in context, the Parliamentary Select Committee that was tasked with reviewing these changes took five months to submit its report. 

“They forwarded around 1,312 suggestions to us, so again our TPL division officers along with the core committee members of the drafting committee formulated the written replies and submitted them to the Select Committee,” Mr. Parbat said. 

After receiving the written and oral replies from the revenue secretary, the chairman of the CBDT, Mr. Parbat and his team, along with the core members of the drafting committee, the Standing Committee submitted its report to Parliament on July 16, 2025.

The revised Bill was then passed in Parliament on August 12, 2025 — just one year after the drafting committee was formed. With the U.K. and Australia having completed similar exercises in more than four years, did the CBDT need more time? 

“The process was started and completed within the time given to us, so there is no question any longer of whether we would have preferred more time to do it,” Mr. Parbat said. “It was a mammoth task that involved 75,000 man-hours, so whether you put it in two years or six months, that is the amount of work that was needed.”

Published – August 31, 2025 03:26 pm IST



Source link

Business Tags:Income Tax Act, Income Tax Act 2025, what is the Income Tax Act

Post navigation

Previous Post: Access Denied
Next Post: Access Denied

Related Posts

  • Access Denied Business
  • The Ayurveda Co shuts down: founders confirm ₹250 crore venture’s closure after rapid expansion
    The Ayurveda Co shuts down: founders confirm ₹250 crore venture’s closure after rapid expansion Business
  • BCCI tells NCLT that it will move application for withdrawal of insolvency plea against Byju’s
    BCCI tells NCLT that it will move application for withdrawal of insolvency plea against Byju’s Business
  • TCS climbs as revenue beat, AI momentum fuel recovery hopes
    TCS climbs as revenue beat, AI momentum fuel recovery hopes Business
  • Labour experts welcome labour codes, but urge Govt to address likely teething issues
    Labour experts welcome labour codes, but urge Govt to address likely teething issues Business
  • Seventh India-flagged LPG tanker crosses Strait of Hormuz
    Seventh India-flagged LPG tanker crosses Strait of Hormuz Business

More Related Articles

All You Need To Know Going Into Trade On Feb 1 Business
SEBI mulls reviewing facility for Basic Services Demat Account to improve financial inclusion SEBI mulls reviewing facility for Basic Services Demat Account to improve financial inclusion Business
Vidarbha important for Maharashtra’s  trillion economy goal: Union Minister Piyush Goyal Vidarbha important for Maharashtra’s $1 trillion economy goal: Union Minister Piyush Goyal Business
South Korean footwear unit to boost industrial growth in Annamayya district, says Collector South Korean footwear unit to boost industrial growth in Annamayya district, says Collector Business
Should the recent stock market volatility be probed? | Explained Should the recent stock market volatility be probed? | Explained Business
Ottawa close to uranium deal with India worth .8 billion: report Ottawa close to uranium deal with India worth $2.8 billion: report Business
SiteLock

Archives

  • September 2026
  • August 2026
  • July 2026
  • June 2026
  • May 2026
  • April 2026
  • March 2026
  • February 2026
  • January 2026
  • December 2025
  • November 2025
  • October 2025
  • September 2025
  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022

Categories

  • Business
  • Nation
  • Science
  • Sports
  • World

Recent Posts

  • Bihar announces OTS scheme for brick kilns, waives ₹90 crore interest on outstanding dues
  • North Korea says nuclear status ‘irreversible’ after UN atomic agency rebuke
  • Bombay High Court permits BMC to cut over 1,200 mangroves for Versova-Madh Island bridge
  • U.S. appeals court rejects Trump policy allowing swift deportations to third countries
  • Trump to meet with Venezuela’s interim President Rodriguez in New York on Sept. 22

Recent Comments

  1. Jamesslits on UP Teacher Who Asked Students To Slap Muslim Classmate
  2. MichaelClear on UP Teacher Who Asked Students To Slap Muslim Classmate
  3. Jamesslits on UP Teacher Who Asked Students To Slap Muslim Classmate
  4. Jamesslits on UP Teacher Who Asked Students To Slap Muslim Classmate
  5. MichaelClear on UP Teacher Who Asked Students To Slap Muslim Classmate
  • How Women’s Basic Rights Are Being Eroded Across World
    How Women’s Basic Rights Are Being Eroded Across World World
  • Access Denied World
  • South Africa vs India: T20 World Cup 2024 Live Cricket Score, Live Score Of Today's Match on NDTV Sports
    South Africa vs India: T20 World Cup 2024 Live Cricket Score, Live Score Of Today's Match on NDTV Sports Sports
  • Access Denied
    Access Denied Nation
  • Access Denied World
  • Access Denied Sports
  • Pentagon chief says U.S. intensifying strikes on Iran
    Pentagon chief says U.S. intensifying strikes on Iran World
  • Andy Murray’s Wimbledon Career Ended Due To Emma Raducanu Withdrawal, Her Response…
    Andy Murray’s Wimbledon Career Ended Due To Emma Raducanu Withdrawal, Her Response… Sports

Editor-in-Chief:
Mohammad Ariff,
MSW, MAJMC, BSW, DTL, CTS, CNM, CCR, CAL, RSL, ASOC.
editor@artifex.news

Associate Editors:
1. Zenellis R. Tuba,
zenelis@artifex.news
2. Haris Daniyel
daniyel@artifex.news

Photograher:
Rohan Das
rohan@artifex.news

Artifex.News offers Online Paid Internships to college students from India and Abroad. Interns will get a PRESS CARD and other online offers.
Send your CV (Subjectline: Paid Internship) to internship@artifex.news

Links:
Associate Journalism
About Us
Privacy Policy

News Links:
Breaking News
World
Nation
Sports
Business
Entertainment
Lifestyle

Registered Office:
72/A, Elliot Road, Kolkata - 700016
Tel: 033-22277777, 033-22172217
Email: office@artifex.news

Editorial Office / News Desk:
No. 13, Mezzanine Floor, Esplanade Metro Rail Station,
12 J. L. Nehru Road, Kolkata - 700069.
(Entry from Gate No. 5)
Tel: 033-46011099, 033-46046046
Email: editor@artifex.news

Copyright © 2023 Artifex.News Newsportal designed by Artifex Infotech.