New Income Tax law aims to build transparent, tech-driven ecosystem for taxpayers: Official

ET logo


The new Income Tax Act rolled out last month aims to reduce litigation, simplify compliance and build a transparent, technology-driven ecosystem for taxpayers, a senior official said here on Tuesday.

Vivek Wadekar, the Principal Chief Commissioner of Income Tax (Pr-CCIT), Pune, speaking about the transition from the six-decade-old Income Tax Act of 1961, said the earlier legislation had become “bulky” after more than 4,000 amendments, often leading to disputes due to varying interpretations of provisions.

“The Income Tax Act, 2025 has made the language simpler and easier to understand so that taxpayers as well as tax authorities are on the same page,” he said.

The new law came into force from April 1, 2026.

The senior official said the department’s focus is on promoting voluntary compliance and reducing friction between taxpayers and authorities through digital initiatives and outreach programmes.


As part of the taxpayer assistance measures, the Income Tax Department has launched ‘Kar Saathi’, a 24×7 AI-powered chatbot to address queries instantly.

In addition, the ‘Kar Setu’ initiative offers more than 2,000 FAQs and educational brochures to help taxpayers understand provisions of the new law in simple language, he said.To improve outreach in Maharashtra, educational booklets related to exemptions and tax deducted at source (TDS) have also been printed in Marathi, the official added.

Highlighting reforms in processing and assessments, Wadekar said refunds are now being processed automatically through the Centralized Processing Centre (CPC) in Bengaluru without manual intervention.

He said complaints regarding “high-pitch” assessments often arise due to communication gaps, including outdated email addresses or incorrect contact details provided by taxpayers.

“Taxpayers should ensure that their contact details are updated to avoid discrepancies and ensure smooth communication with the department,” he said.

The senior official said that the Income Tax Department will organise a Mega Event under “PRARAMBH 2026” (Policy Reform and Responsible Action for Mission Viksit Bharat) focusing on the Income-tax Act, 2025.

The campaign will take place across 23 districts under the Pune region to familiarise taxpayers with the new regime.

A key outreach event has been scheduled on May 15 at the Cosmos Bank Auditorium in Pune in the presence of Rajya Sabha MP Dr Medha Kulkarni, industrialist Lila Poonawalla and MCCIA president Pradeep Bhargava, officials said.

The department will subsequently organise programmes in 10 to 12 additional districts from May 18 onwards.

“Our effort is to reach out to the last taxpayer and make him understand the ease of doing business with the Income Tax Department,” he said.

Wadekar added that the programme will bring together legal professionals, chartered accountants, and representatives from industry bodies to discuss the practical implications of the new law and the broader vision of a taxpayer-centric administration.



Source link

Online Company Registration in India

Leave a Reply

Your email address will not be published. Required fields are marked *