
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.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.