New Income Tax Bill: What taxpayers want from Modi government’s latest Income Tax Act – KPMG survey reveals – The Times of India

KPMG in India did a survey in January 2025 to collect trade views on the Income Tax Act evaluate. (AI picture)

New Income Tax Invoice: The authorities introduced in July 2024 its intention to conduct an intensive evaluate of the Income-tax Act, 1961. The main goal is to remodel the Income Tax Act 1961 right into a extra simple, clear and complete doc, aiming to minimise disputes and supply taxpayers with higher tax certainty.
KPMG in India did a survey in January 2025 to collect trade views on this simplification initiative. The survey encompassed responses from over 200 executives throughout numerous sectors, together with Industrial Manufacturing, Automotive, Monetary Companies, Shopper Markets, Infrastructure, Vitality and Pure Sources, Know-how, Life Sciences, Healthcare and Pharma, amongst others.
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The survey revealed vital findings throughout a number of areas:
1. Precedence Areas for Tax Simplification
84% of respondents prioritised dispute/litigation simplification.
64% advocated for simplifying TDS provisions, at present spanning 30+ transaction classes.
Different priorities included switch pricing (50%), capital positive aspects taxation (43%), and enterprise earnings calculation (38%).
2. Interpretation & Tax Legislation Certainty
96% endorsed making a authorities-revealed earnings-tax commentary, much like the OECD mannequin.
93% supported direct incorporation of helpful clarifications from tax circulars/notifications into the Act.
3. Dispute Decision & Litigation Discount
Present pending tax instances exceed 6 lakh, with 5.5 lakh at CIT(Appeals) degree.
69% supported introducing mediation/arbitration schemes.
62% favoured permitting tax authorities to attraction DRP choices.
98% requested necessary timelines for CIT(A) attraction disposal.
4. Compliance Enhancement
61% most popular a hybrid mannequin for tax official interactions.
35% supported full faceless transition, whereas 4% most popular conventional interactions.
87% supported eliminating necessary TDS certificates issuance.
64% advocated for Type 26AS-primarily based TDS credit score allocation.
5. Company Tax Construction
58% supported company tax price discount.
34% have been happy with present charges, while 7% sought reductions for non-resident firms.
43% acknowledged advantages of the simplified tax regime.
6. Timeline Enhancements
82% requested prolonged deadlines for belated/revised returns.
94% recommended revising switch pricing protected harbour guidelines.
7. Faceless Evaluation Challenges
41% reported no discount in aggressive assessments below faceless system.
60% recommended eradicating CIT(A) appeals from faceless mode.
The Cupboard has given its approval to the New Income Tax Invoice on Friday, which is able to supersede the Income Tax Act 1961 that has served the nation for 60 years. Following its introduction in Parliament, the invoice will probably be forwarded to the Finance Standing Committee for thorough examination.
The preliminary section of the continuing funds session will finish on February 13, earlier than reconvening on March 10 and operating by means of April 4.
Throughout the Funds 2025-26 presentation, Finance Minister Nirmala Sitharaman confirmed that the New Income Tax Invoice can be tabled within the current parliamentary session.