Kolkata: The Income Tax Act 2025, which will come into effect from April 1, aims to simplify compliance, modernise the tax structure and align with global best practices, said Supreme Court Justice R Mahadevan in Kolkata on Saturday.
Speaking at ‘Seminar on Direct Taxes' organised by the Income Tax Bar Association, Calcutta, he said, "India's tax system is a complex and ever-evolving landscape. The country has a well-structured tax framework. The Income Tax Act, 1961, which for the time being is the primary legislation governing taxation, will be replaced by the Income Tax Act 2025 to simplify compliance, modernise the tax structure and align with global best practices."
He noted that the govt and the administration had actively worked on simplifying compliance, reducing litigation, increasing transparency and launched various measures such as e-assessment and schemes to create a more efficient and taxpayer-friendly environment.
He added that despite policies to ease pressure on taxpayers, challenges and disputes have emerged with regard to tax complaints.
Mentioning that in recent years India was one of the countries heading towards a digital economy with the introduction of the unified payments interface, launch of several e-commerce platforms and schemes introduced by the govt, Justice Mahadevan said, "Besides development, the landscape of direct taxation in India underwent significant changes, and this country in the past five years proactively responded to global and domestic imperatives with the introduction of digital economy taxation, general anti-avoidance tools and international taxation."
"Tax authorities in this country should focus on taxpayer centricity, transparency and simplicity, which can assist in building a tax regime that supports India's economic aspirations, promotes investment and inclusive growth," he suggested.
Addressing the seminar, Justice CV Bhadang, president, Income Tax Appellate Tribunal, flagged concerns about overdependence on artificial intelligence in advocacy.
Mentioning a translation from Hindi to English, which meant something entirely different from what was written in Hindi, he said, "It is an accepted fact that technology can be a great servant, but a very bad master. So, overdependence on AI will be very risky."
Justice Duvvuru RL Reddy, vice president, Income Tax Appellate Tribunal, Kolkata, said that the tribunal would soon be shifted to a new office building in the city. The seminar was also addressed by ITBA president SK Tulsiyan.