New Income Tax Act: Increased Compliance Expected

Navi Mumbai, Apr 21 (PTI) The simplified, well-structured Income Tax Act, 2025 will increase the voluntary tax compliance, a senior revenue department official said on Tuesday.

"If you have an Act which is simple to understand, it becomes easier to comply. So, voluntary tax compliance will definitely go up because of a simplified Act," Vikram Sahay, chief commissioner of Income Tax-3, Mumbai said at an event here.

The new Act is both contemporary and well structured, and will help reduce the cost of compliance through simplification and rationalization.


Speaking at the outreach programme for multiple stakeholders including taxpayers, tax representatives, chartered accountants and trade bodies here, Sahay said the original I-T Act dating back over six decades had become voluminous, and extensive cross-referencing after litigations led to the creation of the new Act.

"A time had come and it was felt that we should now embark on the process of simplifying that, simplifying the provisions, which is easier to understand, which will reduce litigation, which will help taxpayers in reading it in a plain language and trying to comply with the provisions of the Act," he said.

He said the Central Board of Direct Taxes has asked all the Principal Chief Commissioners to conduct as many outreach programmes as possible to create awareness about the new provisions and take benefit of those provisions.