Is India’s Tax System About to Change? CBDT Seeks Your Input!

The Indian tax landscape is set for a major revamp, and the Central Board of Direct Taxes (CBDT) is leading the charge by inviting stakeholders to contribute their insights on the newly introduced Income Tax Bill, 2025. This move is part of a broader effort to simplify tax compliance, reduce litigation, and modernize the income tax framework to meet the evolving needs of taxpayers and businesses.

With the bill currently under detailed examination by the Select Committee, CBDT is actively seeking feedback from industry experts, businesses, professionals, and everyday taxpayers. This collaborative effort aims to ensure that the new tax regime is transparent, efficient, and taxpayer-friendly. Here TICE tells how you can give your inputs to CBDT.

A Digital Avenue for Participation

To make the feedback process seamless, CBDT has introduced a dedicated utility on the e-filing portal, allowing stakeholders to submit their suggestions with ease. This online platform, accessible at eportal.incometax.gov.in, features a one-time password (OTP)-based validation process, ensuring a secure and streamlined submission experience.

The link, which went live on March 8, 2025, is open to all individuals and organizations interested in shaping the future of India’s tax system. Contributors are required to enter their name and mobile number to access the submission interface.

Why This Matters: A Step Towards Ease of Compliance

For decades, the Income-tax Act, 1961, has governed India’s taxation system. Over time, it has accumulated layers of complex rules, outdated provisions, and cumbersome compliance requirements, making tax filing a daunting task for businesses and individuals alike.

Recognizing these challenges, the government has taken a proactive step with the Income Tax Bill, 2025, aiming to introduce a simpler and more efficient tax structure. The primary objectives behind this overhaul are:

• Simplification of Tax Rules – Making tax language easier to understand and interpret. 
• Reduction of Litigation – Identifying areas prone to disputes and resolving them proactively. 
• Easing Compliance Burden – Ensuring tax filing becomes more seamless and user-friendly. 
• Eliminating Redundant Rules – Streamlining the law by removing outdated provisions.

Breaking Down the Key Focus Areas

CBDT has encouraged stakeholders to categorize their inputs under four main themes:

1. Simplification of Language – Tax jargon often confuses taxpayers. Simplified language will make tax provisions more accessible to the common man and small businesses.

2. Reduction of Litigation – Lengthy court battles over tax disputes have been a persistent issue. Addressing ambiguities in the law can help reduce unnecessary litigation.

3. Reduction of Compliance Burden – Many businesses struggle with excessive documentation and compliance requirements. Streamlining these processes will encourage voluntary compliance and ease the burden on taxpayers.

4. Identification of Redundant/Obsolete Rules and Forms – Several tax provisions have lost relevance over time. Removing such outdated rules will make the tax system more efficient.

A Call for Action: Stakeholder Participation is Key

CBDT has emphasized the importance of specific and well-structured suggestions. Stakeholders are urged to mention the exact section, sub-section, clause, rule, sub-rule, or form number when submitting their feedback. This level of detail will help the tax authorities assess and implement practical changes effectively.

The consultative approach reflects the government’s commitment to democratizing tax policy-making. By encouraging participation from a diverse group of taxpayers, the CBDT aims to craft a taxation system that is truly inclusive and reflective of the needs of modern India.

What’s Next?

As feedback pours in, the Select Committee will analyze and incorporate viable suggestions into the final draft of the Income Tax Bill, 2025. This marks a crucial phase in India’s tax reform journey, with the potential to reshape tax compliance, promote ease of doing business, and enhance administrative efficiency.

For stakeholders looking to voice their opinions, now is the time to step forward and contribute to a fairer, more efficient tax system. The government’s call for suggestions isn’t just a routine exercise—it’s a defining moment for tax reforms in India.

India is on the brink of a significant tax transformation, and stakeholder engagement is at the heart of this process. The CBDT’s initiative isn’t just about making tax laws simpler; it’s about creating a tax regime that fosters trust, compliance, and economic growth.

With the digital submission window open, tax professionals, businesses, and individuals must seize this opportunity to shape the future of India’s taxation landscape. After all, a tax system that works for the people begins with listening to the people.