Ahmedabad: Principal Chief Commissioner of Income Tax, Gujarat, Satish Sharma on Wednesday stated that the new Income Tax Act, 2025, which comes into effect from April 1, will make tax compliance simpler and more transparent for taxpayers.
Outreach Programmes Across Gujarat
Sharma announced that the Income Tax department will conduct 18 outreach programmes across 14 districts in Gujarat to raise awareness about the new law among taxpayers and professionals. The first such programme, named 'Prarambh', was launched on Wednesday in collaboration with the Ahmedabad chapter of the Institute of Chartered Accountants of India (ICAI).
Changes in Tax Administration
Addressing tax professionals, Sharma highlighted that the tax administration system has evolved significantly over the years. He noted that the share of income tax in central revenues has increased from 18-20% in 1990 to over 53% currently, while the maximum tax rate has been reduced from 60% to 30%.
"The department today functions more as a service provider than solely an enforcement agency, as technology has led to a substantial rise in voluntary compliance," Sharma said. He added that digital infrastructure has transformed the return filing process, with the Central Processing Centre now capable of processing 50 lakh returns in a single day.
Drafting and Features of the New Act
According to Sharma, the new Act was drafted by a team of 250 senior officers and aims to simplify tax provisions while improving transparency and ease of compliance. Former ICAI president Aniket Talati remarked that the Act introduces several progressive changes and is expected to strengthen voluntary tax compliance.
Officials stated that the outreach campaign will focus on helping taxpayers and professionals understand the key provisions of the new legislation.
