Supreme Court Justice Announces Income Tax Act 2025 in Kolkata Seminar
In a significant address in Kolkata on Saturday, Supreme Court Justice R Mahadevan revealed details about the upcoming Income Tax Act 2025, set to take effect from April 1. Speaking at the 'Seminar on Direct Taxes' organized by the Income Tax Bar Association, Calcutta, Justice Mahadevan emphasized that the new legislation aims to simplify compliance, modernize the tax structure, and align with global best practices.
Replacing the 1961 Act for a Modern Tax Framework
Justice Mahadevan described India's tax system as a complex and ever-evolving landscape, noting that the current Income Tax Act of 1961 will be replaced by the 2025 version. He stated, "The country has a well-structured tax framework, but the new act is designed to enhance efficiency and taxpayer-friendliness." He highlighted that the government and administration have actively worked on:
- Simplifying compliance procedures
- Reducing litigation through clearer guidelines
- Increasing transparency in tax assessments
- Launching measures like e-assessment schemes
Despite these efforts, he acknowledged that challenges and disputes persist regarding tax complaints, indicating room for further improvement.
Adapting to a Digital Economy and Global Standards
Justice Mahadevan pointed out that India has been rapidly transitioning towards a digital economy, with initiatives such as the unified payments interface and various e-commerce platforms. He explained, "In the past five years, direct taxation in India has undergone significant changes, proactively responding to global and domestic imperatives." Key developments include:
- Introduction of digital economy taxation to keep pace with online transactions
- Implementation of general anti-avoidance tools to prevent tax evasion
- Enhancements in international taxation to align with global norms
He urged tax authorities to focus on taxpayer centricity, transparency, and simplicity to build a regime that supports economic aspirations, promotes investment, and fosters inclusive growth.
Concerns Over AI Dependence in Tax Advocacy
During the seminar, Justice CV Bhadang, President of the Income Tax Appellate Tribunal, raised concerns about the overdependence on artificial intelligence in advocacy. Citing an example of a mistranslation from Hindi to English that altered the intended meaning, he cautioned, "It is an accepted fact that technology can be a great servant, but a very bad master. So, overdependence on AI will be very risky." This warning underscores the need for human oversight in technological applications within the tax system.
Infrastructure Updates and Seminar Participation
Justice Duvvuru RL Reddy, Vice President of the Income Tax Appellate Tribunal in Kolkata, announced that the tribunal will soon be relocated to a new office building in the city, aiming to improve operational efficiency. The seminar also featured addresses by ITBA President SK Tulsiyan, who contributed to the discussions on tax reforms and compliance strategies.
The event highlighted a collective effort to modernize India's tax infrastructure while addressing emerging challenges in a digitally driven economy.
