The article discusses a new Income Tax (I-T) Act aimed at simplifying tax processes and making them more taxpayer-friendly. The key points from the article are: 1. Trust-Based Tax Administration • The focus of tax administration has shifted from being adversarial to a non-intrusive, non-adversarial, and participative approach. • Scrutiny is being reduced, and communication with taxpayers is being emphasized. 2. Revenue Growth Despite Economic Slowdown • The Budget target for tax revenue is ₹22.7 lakh crore, with a minimum benefit of ₹1 lakh crore expected. • Even with economic uncertainties, tax collections are expected to grow through business growth and salary increases. 3. Taxpayer Benefits from Budget Announcements • The number of taxpayers is expected to increase due to reduced tax liabilities. • The rebate limit has been raised from ₹7 lakh to ₹12 lakh for three crore taxpayers, ensuring zero-tax liability. 4. Changes in the I-T Act for Simplification • The Act will focus on making tax language simpler and removing complexity. • The current tax system, based on the 1961 Act, is considered outdated and difficult to understand. • The goal is to reduce litigation by improving clarity and making compliance easier. 5. Overall Approach • The government aims to integrate taxation with economic growth. • The tax system will be made more logical and streamlined to encourage compliance and reduce disputes. In summary, the new I-T Act focuses on making taxation simpler, less adversarial, and more growth-oriented while ensuring that revenue targets are met through economic expansion rather than aggressive scrutiny.