'New tax law to simplify rules, cut litigation'

Finance secretary Tuhin Kanta Pandey-the top bureaucrat in the finance ministry-was tasked by finance minister (FM) Nirmala Sitharaman with working out the nuts and bolts of the Union Budget's most popular revamping personal incometax, apart from finalising the draft of the new income-tax bill which is expected in the current session of the Parliament.

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In a conversation with Rajeev Jayaswal, he spoke about the letter and spirit of the new tax legislation. Edited excerpts: announcement,

The finance minister announced to bring a new income tax legislation.

What was the process and aims of drafting this new bill? The Budget announced that a new bill will be brought that will be much simpler. It will be close to half of the current Income-Tax Act. This is in line with the FM's July 23, 2024 announcement that simplification of the Income-tax Act is to be completed within six months. Then we formed 26 subcommittees and review committees.

There were public consultations with nearly 20,000 suggestions received. A special committee did the drafting process.

There was a consolidation committee, there was a finalisation committee... Around 180 offices were involved in the entire process. The finance minister did several reviews. Reviews also happened at the level of the Prime Minister's Office (PMO).

So, the outcome is that we are almost reducing half of the chapters and half of the words.