‘Enforcement with empathy’: Income tax department working on guidelines, forms for new tax invoice, says CBDT chief

The Income Tax department is within the strategy of framing guidelines, forms, and procedures below the proposed Income Tax Bill, 2025, which goals to exchange the six-decade-old direct tax laws, Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal stated on Thursday.Speaking on the 166th Income Tax Day occasion within the capital, Agarwal stated the new framework would mirror readability, simplicity, and ease for taxpayers, PTI reported. “Work is already underway to give shape to its rules, forms, and procedures, a critical next step… These will define how the law functions and practice. And I am confident that just like the bill, these too would reflect our shared commitment to clarity, simplicity, and taxpayer convenience,” he stated.The Income Tax Bill, 2025, was launched in Parliament on February 13 and subsequently referred to a parliamentary panel. The panel submitted its report on July 21, recommending modifications to the draft laws.Agarwal stated the department will proceed to help the purpose of creating India a Viksit Bharat by making certain truthful tax assortment, strengthening voluntary compliance, and constructing methods that encourage belief.Highlighting the department’s use of expertise, he stated information analytics helps drive voluntary disclosures. “Our ‘Nudge campaign’, which is a short form for non-intrusive usage of data to guide and enable taxpayers, today uses behavioural insights and transactional level data to detect discrepancies,” he stated.“Be it disclosed income, incorrect deductions, or high risk claims. Rather than launching compliance measures at once, we are now enabling taxpayers to review and voluntarily update their filings. This is enforcement with empathy and it reflects department’s evolving mindset to trust persons,” Agarwal added.