BENGALURU: Karnataka has emerged as the second-largest direct tax contributor after Maharashtra, with its net tax collections already close to Rs 1.25 lakh crore, as revealed by Vidisha Kalra, Principal Chief Commissioner of Income Tax (Karnataka and Goa Region) in the city on Monday.
Kalra was speaking at a conference on the ‘New Income Tax Act, 2025, and Rules: Understanding the Nuances and the Transitional Challenges’ organised by the Bangalore Chamber of Industry and Commerce.
“A fair, predictable and transparent tax system is the foundation of a confident business community. A tax law that is simple, transparent and understandable is itself an instrument of empowerment. When taxpayers understand what is expected of them,compliance becomes an act of participation rather than a burden,” said Kalra, attributing Karnataka’s contribution to “strong economic activity, great self-compliance, sectoral outreach, digital initiatives and improved guidance from tax professionals and industry bodies”.
Former director-general of income tax Dr Sibichen K Mathew noted the need to amend the previous Act after 64 years. “About 4,000 amendments have been made to the erstwhile Act, after taking into account feedback from over 2,000 respondents,” he said.
Central Board of Direct Taxes (CBDT) member Pallavi Agarwal added that the Income Tax Department has conducted 304 outreach programmes since April 2026 across the country in English and regional languages to familiarise taxpayers, professionals and other stakeholders with the Income Tax Act, 2025, Income Tax Rules, 2026, and the redesigned tax forms.
“BCIC’s 50th year reaffirms our commitment to strengthening industry and building meaningful industry-government partnerships.The new Income Tax Act is an important reform that can simplify compliance, reduce litigation and improve ease of doing business. Through this conference, we aim to help industry understand the new framework while creating a constructive platform for engagement with tax authorities,” added BCIC president K Ravi.