IT Act simplification to curtail litigation

New India deserves a simple, easy-to-comprehend, easy-to-comply Income Tax Act, says Panda

- Gireesh Chandra Prasad

Simplification of the Income Tax Act, for which a select committee of the Lok Sabha made over 330 recommendations, will cut down tax litigation significantly and aid future tax reforms, the panel's chairperson Baijayant Panda told Mint in an interview.

The select committee was set up for the purpose of scrutinizing the bill.

The first draft of the bill tabled in the Budget session of the House this year had sought to reduce the volume of words by nearly half, while the Select Committee wanted to make sure the simplification exercise does not lead to wordings that are open to different interpretations, Panda said.

The number of words has been slashed from over 500,000 to about 260,000.