CA Harshil Sheth, an author of Income Tax Ready Referencer shares his view on upcoming New Income tax Law 2025.
As a practicing Chartered Accountant who has lived through the GST era since 2017, I cannot help but feel worried about the upcoming New Income Tax Act that is set to replace the Act of 1961. While reforms are welcome in principle, my fear is that the implementation may once again turn into a nightmare for professionals and taxpayers alike—just like GST.
1. Implementation Chaos & Portal Failures
The GST experience has shown us how ill-prepared systems and faulty portals can force professionals to work round the clock just to meet compliance. If the New Income Tax Act is introduced without a robust, fool-proof system, we may again face sleepless nights, missed family time, and undue stress because of portal crashes during due dates.
2. Flood of Notifications, Circulars & Amendments
GST brought 200+ circulars and 400+ notifications in just 8 years. A law meant to simplify turned into a maze of contradictions. If the new Income Tax Act also undergoes constant piecemeal changes, professionals will be stuck decoding rules instead of focusing on compliance or advisory.
3. Unrealistic Transition Timelines
GST was implemented suddenly, leaving no time for businesses and professionals to adapt.
If the new Income Tax Act is rolled out without adequate transition time, training, and clarity, the same chaos will repeat.
4. Litigation Explosion
Ambiguous drafting and half-baked clarifications under GST have created a tsunami of litigations at every stage.
Unless the new Act is drafted with absolute clarity, we risk creating another mountain of disputes that will choke courts and burden professionals.
5. Mental Toll on Professionals
For 8+ years, tax professionals have silently suffered sleepless nights, pressure, and anxiety due to GST.
If the new Income Tax Act repeats the same cycle of portal issues, conflicting deadlines, and frequent changes, it will severely impact the mental and physical health of tax professionals again.
PS- My fear is not about the change itself, but about how the change will be implemented. If it is rushed, vague, and portal-driven without adequate testing and consultation, it will repeat the same mistakes as GST.
-> Income tax Bill 2025 as passed by LS
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