Empowers taxpayers, reduces litigation, ensures an improved digital compliance, top tax official says
HYDERABAD, Apr 16 (The CONNECT)- the New Income Tax Bill & Finance Act 2025 empowers taxpayers, reduces litigation, and ensures an improved digital compliance, said Mitali Madhusmita, Principal Chief Commissioner of Income Tax, Andhra Pradesh & Telangana.
Addressing a meeting organised by the Federation of Telangana Chambers of Commerce and Industry (FTCCI) Madhusmita highlighted the government’s commitment to promoting voluntary compliance, enhancing the ease of doing business, and progressing towards a $5 trillion economy, a vision laid out by Hon’ble Prime Minister Shri Narendra Modi.
“The government is moving towards decriminalising minor tax offences, including delays in TDS filings and minor IT return issues. These were historically seen as areas of fear and friction, and the shift from prosecution to penalty is a welcome move,” she said.
The Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, 2025, aims to replace the Income-Tax Act, 1961, while retaining its core provisions. The new bill simplifies the structure, reducing over 700 sections to 536, and introduces the concept of a unified “Tax Year”, replacing the existing “Previous Year” and “Assessment Year”.
“This bill is designed to be simple, clear, and predictable, guided by global best practices and tailored to modern economic needs,” Madhusmita explained. “It empowers taxpayers, reduces litigation, and ensures better digital compliance.”
The act has consolidated chapters from 47 to 23, minimising ambiguity, which previously led to nearly 4,000 amendments over the years. “The old act left a lot to interpretation, benefiting only legal professionals. This reform brings clarity,” she said.
Madhusmita also shared that direct tax collections from Andhra Pradesh and Telangana have increased significantly — from ₹1 lakh crore last year to ₹1.19 lakh crore this year — reflecting the region’s growing compliance and economic activity.
In his welcome address, Dr. Suresh Kumar Singhal, President of FTCCI, emphasised the chamber’s proactive role in analysing the bill and submitting constructive feedback to the Finance Ministry, including corrections, simplifications, and suggestions to resolve technical challenges.
