The new I-T Act

Most of us are aware that the existing Income Tax Act which was framed way back in 1961 has undergone sea changes over a period of time, all these contributed to misinterpretations, litigations etc.
One can already see in the Budget the introduction of presumptive basis of taxation for individuals. Under the new provision, eligible taxpayers would be relieved from the task of maintaining a complete set of books of accounts, freeing them of administrative hassles, and also reducing the costs of tax collection. It is also believed that the new code would embody a “low incentive-low tax rate” system, which would essentially offset an expansion in the tax base against a drop in the rate at which income is taxed.
While the government has already introduced the alternative dispute resolution mechanism and the safe harbour rules in the Budget, the next area that the government should target to reduce litigation and bring more certainty should be the introduction of advance pricing arrangements.