The changes include rationalisation of archaic perquisite thresholds—such as tax-free at-work meal values and gifts received from employers—bringing the tax framework closer in line with contemporary economic realities, tax experts said.
The draft also introduced a significant change in the definition of ‘accountant’ for certification purposes under the new law.
Under the revised rules, individual professionals will be required to have at least 10 years of experience and annual receipts exceeding Rs 50 lakh in the year preceding certification, while partners in firms engaged in accountancy or valuation services will qualify only if the entity’s annual receipts exceed Rs 3 crore.
According to the CBDT, the number of rules has been reduced to 333 from 511, while the number of forms has been cut to 190 from 399.
Tax return and compliance forms have been redesigned to standardise common information, reduce compliance burden and enable automated reconciliation and pre-filled data, the board said.
“These smart forms would considerably ease the filing and enhance the user experience. They would also enable centralised processing and data driven decision making so that the technology is used to provide better services to the taxpayers,” CBDT said in a note following the draft rules.Richa Sawhney, partner, tax at Grant Thornton Bharat LLP, said, “The focus on technology in ensuring the forms are pre -filled and reconciled will reduce the time spent in compliances and reduce inadvertent errors.”
She added, “It is important that all stakeholders evaluate these rules and forms in detail and share their inputs with the government in a timely manner, so that any teething issues in implementation are mitigated and there is a smooth transition.”
The draft rules and forms will remain open for comments for 15 days, until February 22, as part of efforts to make the framing of subordinate legislation more participative, the CBDT said.
“Together, these measures signal a thoughtful and forward-looking approach to legislative implementation,” said Sandeepp Jhunjhunwala, partner at Nangia Global. “The decision to release the draft rules well in advance for public consultation reflects a commendable commitment to participatory governance.”