Wed Jan 08 08:40:00 UTC 2025: ## India Plans Major Income Tax Simplification for Budget 2025

**New Delhi, [Date]** – The Indian government is preparing to significantly simplify the income tax filing process, aiming to reduce bureaucratic burden and increase transparency. Proposed changes to the Income Tax Act of 1961, expected to be unveiled in Budget 2025, will focus on clarifying language and using formulas and tables to organize information. No changes to tax rates or policies are anticipated.

Sources indicate the revised law will be released for public consultation by mid-January, with incorporation into the February budget. Key changes may include: replacing complex income computation structures with formula-based ones; consolidating the current assessment year and financial year into a single tax year; using tabular depictions for similar taxpayers; and reducing the number of supplementary forms required with tax returns, making them readily available online.

While the Ministry of Finance declined immediate comment, experts believe these changes are designed to ease the burden on taxpayers. This move is seen as crucial given the escalating number of tax disputes, which reached over ₹10.5 lakh crore by the end of FY23. Finance Minister Nirmala Sitharaman announced a comprehensive review of tax laws six months ago, aiming to make regulations more taxpayer-friendly. The proposed reforms are expected to bring much-needed clarity and efficiency to India’s income tax system.

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