Key Income Tax Reforms Initiated by CBDT in the Year 2023
In the dynamic landscape of Income Tax reforms, the Central Board of Direct Taxes (CBDT) has spearheaded citizen-centric initiatives in 2023, focusing on transparency and efficiency. These transformative tax reforms aim to enhance the overall taxpayer experience and simplify compliance processes. Let’s delve into the key Income Tax reforms introduced by CBDT during this pivotal year.
1. Introduction of Updated Return Facility:
The Finance Act of 2022 brought forth the Updated Returns facility, empowering taxpayers to revise their returns within two years from the end of the relevant assessment year, subject to specified conditions.
2. Pre-Filling of ITRs Expanded:
Under the process of tax reforms, the CBDT has expanded pre-filling of Income Tax Returns (ITRs), now incorporating detailed information such as salary, interest, dividend, tax payments (including TDS-related data), brought forward losses, MAT credit, etc. This expansion aims to streamline the compliance process for taxpayers.
3. Condonation of Delay in Claiming Deduction u/s.80P:
Circular No. 13/2023 has been issued to condone delays under Section 119(2)(b) of the Income-tax Act, 1961, specifically addressing applications related to returns of income claiming deduction under section 80P for assessment years AY 2018-19 to AY 2022-23.
4. Condonation of Delay in filing Form 10-IC:
Circular No. 19/2023 extends the due date for filing Form 10-IC for AY 2021-22 until 31.01.2024, with condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961.
5. Ease of Doing Business Initiative for Start-ups:
For Start-Up companies under scrutiny for the applicability of section 56(2)(viib), a streamlined process is implemented, eliminating unnecessary verifications in alignment with the letter F.No.173/149/2019-ITA-1 dated 10.10.2023.
6. Introduction of New e-pay Tax Module (TIN 2.0):
As a most important income tax reform in 2023, TIN 2.0, the new e-pay tax payment platform, replaces the previous OLTAS based system. This upgrade provides user-friendly options for e-payment, including Internet Banking, NEFT/RTGS, OTC, Debit Cards, payment gateway, and UPI, with an increased number of banks onboarded.
7. New Features under AIS Utility:
A “Modify Feedback” feature in AIS utility allows taxpayers to amend earlier feedback, offering a comprehensive view of all functionalities. New attributes are added for the “Tax Payments” section, facilitating ITR filing. PAN-Aadhaar linking status is displayed on AIS portal.
8. Introduction of “Payment of Taxes Report” in Compliance Portal:
A new report under the ‘Reports’ section of the Compliance portal consolidates tax payments made by a taxpayer in a given Assessment year, offering a detailed summary useful for taxpayers.
9. Facility for Filing Online Forms Related to TDS:
All forms related to the deduction of tax at lower or nil rates can now be filed and processed electronically, simplifying the application process.
10. Launching of Revamped National Website:
The launching of the revamped website ‘www.incometaxindia.gov.in’ is the biggest tax reform of the year and serves as a comprehensive repository of tax information with a mobile-responsive layout, offering a variety of tax tools to assist taxpayers in filing their ITRs.
11. Enablement of Faceless Regime:
As one of the crucial tax reforms of the year, the Faceless regime has been successfully implemented, streamlining the assessment, penalty, and appeals processes with the issuance of SOPs, video conferencing, and dedicated emails for grievance redressal.
12. Setting-up of DFC at Mysuru, Karnataka:
The establishment of a Demand Management Facilitation Centre (DFC) in Mysuru, Karnataka, aims to assist taxpayers in resolving outstanding demands. Calls made to the taxpayers from 86166781200 to facilitate the taxpayer to reduce their demands by rectification. Taxpayers can also call the DFC on the number 1800 309 0130. Mail communication with DFC can be done through the mail ID: taxdemand@cpc.incometax.gov.in.
In summary, the CBDT’s 2023 Income Tax reforms mark a significant stride towards a more transparent, efficient, and user-friendly tax regime, ultimately benefiting taxpayers across the nation.
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To Access the CBDT Circular 20/2023 Dt. 28 December 2023 CLICK HERE
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