Latest news with #Agarwal
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Business Standard
9 hours ago
- Business
- Business Standard
Income Tax dept working on rules for new direct tax law: CBDT chief
The Central Board of Direct Taxes (CBDT) chief on Thursday said that the Income Tax department has begun drafting rules, forms and procedures for the Income Tax Bill, 2025, PTI reported. The bill, which seeks to replace the current income tax law, was tabled in Parliament in February and reviewed by a parliamentary panel that submitted its report to Parliament on 21 July, the report added. Speaking at an event in Delhi, CBDT chairperson Ravi Agarwal said, 'Work is already underway to give shape to its rules, forms and procedures - a critical next step. These will define how the law functions in practice. And I am confident that just like the bill, these too would reflect our shared commitment to clarity, simplicity and taxpayer convenience.' He noted that the department is aligning its enforcement approach with a principle of 'empathy', aiming to improve voluntary compliance. '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 the department's evolving mindset to trust persons,' Agarwal was quoted as saying. The CBDT chief also highlighted the department's increasing use of data analytics through its 'Nudge' initiative - short for 'non-intrusive usage of data to guide and enable taxpayers' - which uses behavioural insights and transaction-level data to identify discrepancies in tax filings. The system focuses on issues such as under-reported income, incorrect deductions or suspicious claims. In a separate interview with The Indian Express, Agarwal also stated that the department has started using artificial intelligence (AI) to monitor taxpayer behaviour. This includes tracking activity on online tax portals, identifying high-value transactions and filtering out PANs associated with suspicious claims. The long-term aim, he said, is to build a 360-degree view of individual financial activity and detect behavioural patterns that may indicate tax non-compliance.
Time of India
9 hours ago
- Business
- Time of India
'Enforcement with empathy': Income tax department working on rules, forms for new tax bill, says CBDT chief
The Income Tax department is in the process of framing rules, forms, and procedures under the proposed Income Tax Bill, 2025, which aims to replace the six-decade-old direct tax legislation, Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal said on Thursday. Speaking at the 166th Income Tax Day event in the capital, Agarwal said the new framework would reflect clarity, 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 said. The Income Tax Bill, 2025, was introduced in Parliament on February 13 and subsequently referred to a parliamentary panel. The panel submitted its report on July 21, recommending changes to the draft legislation. Agarwal said the department will continue to support the goal of making India a Viksit Bharat by ensuring fair tax collection, strengthening voluntary compliance, and building systems that inspire trust. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo Highlighting the department's use of technology, he said data analytics is helping 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 said. '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. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
10 hours ago
- Business
- Economic Times
I-T dept working to give shape to rules, procedures under new Income Tax Bill: CBDT chief
The Income Tax department is working to give shape to the rules, forms and procedures for the new Income Tax Bill, 2025, which aims to simplify the six-decade old direct tax law. Speaking at the 166th Income Tax Day event here, Central Board of Direct Taxes (CBDT) Chief Ravi Agarwal also said the department is following the principle of 'enforcement with empathy', wherein it is enabling taxpayers to review and voluntarily update their finances. Agarwal said "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". The new Income Tax Bill, 2025, was introduced in Parliament on February 13, 2025, and was referred to a parliamentary panel. The panel was submitted its report to Parliament on July 21 suggesting some changes to the I-T bill. Agarwal said the Income Tax department will continue to play its role in making India Viksit Bharat by collecting fair taxes, fostering voluntary compliance, and ensuring that are systems are worthy of trust citizens that put in place. Agarwal said the department has been using data analytics for voluntary compliance. "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. "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.
Time of India
10 hours ago
- Business
- Time of India
I-T dept working to give shape to rules, procedures under new Income Tax Bill: CBDT chief
The Income Tax department is working to give shape to the rules, forms and procedures for the new Income Tax Bill, 2025, which aims to simplify the six-decade old direct tax law. Speaking at the 166th Income Tax Day event here, Central Board of Direct Taxes (CBDT) Chief Ravi Agarwal also said the department is following the principle of ' enforcement with empathy ', wherein it is enabling taxpayers to review and voluntarily update their finances. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Artificial Intelligence MCA Product Management Cybersecurity MBA Design Thinking Public Policy Finance Healthcare Project Management Data Science others PGDM CXO Technology Operations Management Digital Marketing Leadership Management Others Degree Data Science Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details Agarwal said "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 ". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold Container Homes in National Capital Region - Prices You Won't Believe! Shipping Container Homes | Search Ads Search Now Undo The new Income Tax Bill, 2025, was introduced in Parliament on February 13, 2025, and was referred to a parliamentary panel. The panel was submitted its report to Parliament on July 21 suggesting some changes to the I-T bill. Agarwal said the Income Tax department will continue to play its role in making India Viksit Bharat by collecting fair taxes, fostering voluntary compliance, and ensuring that are systems are worthy of trust citizens that put in place. Live Events Agarwal said the department has been using data analytics for voluntary compliance. "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. "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.
The Hindu
a day ago
- Business
- The Hindu
AI tools enabled ₹11,000-crore of additional tax revenue in last 4 years: CBDT Chairman
Through the use of various artificial intelligence (AI) tools, the Income Tax Department has over the last four years encouraged more than one crore taxpayers to voluntarily update tax returns leading to ₹11,000 crore of additional tax revenue for the government, Central Board of Direct Taxes Chairman Ravi Agarwal said in an interview. Mr. Agarwal added that these tools also helped reveal ₹29,000 crore worth of previously undisclosed foreign assets and ₹1,000 crore of foreign income related to cryptocurrencies, or virtual digital assets (VDAs), in 2024-25. 'The AI analysis comprises two parts: the AI tool itself, and the database that the tool has to analyse,' Mr. Agarwal explained. 'We have engaged vendors for the tools themselves. There are various tools depending on the stage and the platform where the AI is being used. For example, in the Centralized Processing Centre for Income Tax returns in Bengaluru one component of AI is being used.' He explained that, while the tax department generates Annual Information Statements (AIS) for about 40 crore unique taxpayers, nine crore of those actually file returns. The first step for the AI tool is to analyse whether any of the remaining 31 crore should be filing returns. 'The second component is people who have filed their return, and whether they have filed the right return or not,' Mr. Agarwal said. 'That analysis is also through AI, where you analyse the patterns of past history and find out. And the third is to determine who are the habitual defaulters.' The Income Tax Department then employs a system called NUDGE (Non-intrusive Usage of Data to Guide and Enable) to send letters to taxpayers. On the basis of these letters, the taxpayers either revise or update their returns or inform the Department that they stand by them. 'As a result of this exercise, in the last 4 years since 2021-22, more than 1 crore updated returns have been filed wherein ₹11,000 crore of additional tax revenues have come in,' Mr. Agarwal said. Encouraged by this, the I-T Department last year tweaked its rules to say that returns could be updated up to four years later, instead of the earlier two-year limit. 'The point was that, if the Income Tax Department is flagging the issue, the taxpayers should have an opportunity within the statute wherein they can correct the mistake,' Mr. Agarwal explained. Apart from the additional foreign assets worth ₹29,000 crore and foreign income worth more than ₹1,000 crore related to VDAs that were disclosed in updated returns last year, the Income Tax Department in January to March this year also conducted a similar NUDGE campaign for political donations. Taxpayers claiming deductions under Section 80GGC of the Income Tax Act, which pertains to political donations, were 'nudged' through SMSs and emails. According to the Department, due care was taken to exclude genuine donors whose names or details appeared in the contribution reports filed by the political parties on the Election Commission website. Through this campaign, 6.25 lakh taxpayers received 'nudges' for the claims they made for the financial years 2022-23, 2023-24, and 2024-25. Of these, 35,260 taxpayers amended their returns, and ₹404.2 crore of additional tax was paid.
