India to Simplify Decades-Old Income Tax Filing Rules in Budget

India’s government plans to simplify its income tax filing rules to make it less tedious for taxpayers to comply with the law and help cut down on disputes that have ballooned to more than $120 billion over the past decade.

A proposed revamp of the Income-tax Act of 1961 is currently being finalized and will likely be issued for public consultation around mid-January, according to people familiar with the matter, who asked not to be identified as the information isn’t public. The revised legislation will then be released in the government’s budget, expected in early February, they said.

The changes ...