January 9, 2025 - The Union Government is preparing for significant changes to simplify and reduce the hassle of Income Tax Return (ITR) filing process. The focus on reforms has come following more than $120 billion worth of tax disputes having accumulated in the past decade.

According to media reports, quoting Finance Ministry sources, the proposal for reforms in the Income Tax Act is in its final stages and may be presented for public consultation by mid-January. After that, the revised law is likely to be included in the 2025-2026 annual Budget to be presented on February 1.

The government may streamline tax filing processes, reduce compliance burdens and expand the tax base, say the Ministry sources. The government plans to improve the overall ease of doing business.

With Media Inputs