New Delhi, Feb. 14 -- The Income Tax Act of 1961 has undergone innumerable amendments since its inception (4,000, as stated by the finance minister in Parliament). Historically, successive governments have used tax as an instrument to incentivize specific industries, promote investments in certain regions, or to encourage foreign exchange earnings. As a result, numerous provisions were added over the years to provide sectoral, regional or specific activity-related benefits. Additionally, various explanations, provisos and exceptions were introduced to clarify or nullify the impact of judicial pronouncements.

Over time, this made the Act unwieldy, increasingly complex and difficult to navigate, even for practising accountants and lawyers....