Union Finance Minister Nirmala Sitharaman said the use of simplified language in the new Income Tax Bill, 2025, marks a significant shift in making the provisions easier to understand.
It will reduce the potential for misinterpretation and enhance taxpayer-centricity and compliance, Sitharaman added.
In a separate development, the Finance Minister also urged the Income Tax Department to speed up the disposal of disputed tax demands and litigation backlog, and to withdraw departmental appeals falling below the newly revised monetary thresholds within three months.
While she lauded the efforts of the Central Board of Direct Taxes(CBDT) in redrafting the new Income Tax Bill, she stressed that good policies alone are not enough – timely execution and grievance redressal must follow. This includes faster processing of refunds and prompt resolution of taxpayer complaints.
“Good policies alone are not enough – what matters is timely execution,” Sitharaman said.
She also requested the Department to undertake region-wise performance reviews to help identify factors hindering performance and streamline operations through indicators such as grievance disposal, Orders Giving Effect (OGE) issuance, rectification completion, and processing of condonation cases under Section 119.
Sitharaman also lauded income tax (I-T) officers for their nimbleness in adapting to newer technologies and drafting the new income tax bill. She also gave away awards to the officers involved in drafting the bill, and also those who looked into the legal aspects.
“I’ve seen you do spectacular work in reducing the number of words in the 1961 Income Tax Act to half its size, but you’re not able to issue Order Giving Effects (OGEs) in time. Just unbelievable. Set yourself some kind of a record, set yourself some kind of a protocol. Just don’t delay on the issue of OGE,” she said.