ENA Sectors 2026-03-23 16:05:48 <p><span style="font-size:14px"><strong>New Delhi, Mar 23 (KNN)</strong> Minister of State for Finance Pankaj Chaudhary replying to a question in the Parliament on Monday said that the government has undertaken steps to simplify income tax laws while minimising ambiguity and litigation.</span></p> <p><span style="font-size:14px">A comprehensive review of the Income-tax Act, 1961 was carried out to make provisions clearer, concise and easier to understand. </span></p> <p><span style="font-size:14px">Chaudhary noted that the government retained key legal terms already interpreted by courts, used simpler language, and introduced formulae and tables to reduce scope for multiple interpretations.</span></p> <p><span style="font-size:14px">He added that amendments are made after stakeholder consultations, supported by explanatory memoranda and FAQs. The Central Board of Direct Taxes (CBDT) also issues circulars and guidelines to clarify provisions and address taxpayer concerns.</span></p> <p><strong><span style="font-size:14px">Automated System for Lower or Nil TDS</span></strong></p> <p><span style="font-size:14px">The government has proposed a rule-based automated system for issuing certificates for lower or nil tax deduction at source (TDS). Amendments under the Finance Bill, 2026 allow for electronic issuance of such certificates without requiring applications to the Assessing Officer. Detailed rules will be finalised after the bill is enacted.</span></p> <p><strong><span style="font-size:14px">Nil Tax Liability Assessees</span></strong></p> <p><span style="font-size:14px">The number of taxpayers declaring zero gross tax liability has shown some variation in recent years, standing at 1.34 crore in 2021 22, 1.25 crore in 2022 23, 1.19 crore in 2023 24, 1.26 crore in 2024 25 and 1.22 crore in 2025 26.</span></p> <p><span style="font-size:14px">The government stated that no specific data is available on cases of ambiguity or legal challenges faced by taxpayers since 2020, while noting that litigation may also arise from instances of tax evasion or avoidance.</span></p> <p><strong><span style="font-size:14px">Measures to Reduce Litigation</span></strong></p> <p><span style="font-size:14px">The minister highlighted, to improve certainty and reduce disputes, the government has taken steps including periodic legal reviews, stakeholder consultations, issuance of explanatory notes, and regular clarifications by tax authorities.</span></p> <p><span style="font-size:14px">These measures aim to enhance transparency, simplify compliance, and build taxpayer confidence in the system.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 45556 https://knnindia.co.in/news/newsdetails/sectors/govt-moves-to-simplify-tax-laws-to-reduce-ambiguity-litigation-mos-finance 2026-03-23 16:05:48 knnindia.co.in