New Delhi, April 17 -- Companies will need to undertake a comprehensive revamp of their internal systems, including enterprise resource planning (ERP), payroll structures, and tax processes, to align with the expanded disclosure obligations under the new Income Tax Act and Rules, Khaitan & Co Partner (Direct Tax) Shaily Gupta told ANI today.

"They need to reconfigure ERP for payment systems to align with revamped TDS and TCS provisions, revise internal SOPs, assess the need to update agreements, and restructure payroll to pass on the benefits of revised employee tax rules. Overall, this calls for significant preparatory work. Companies should also prioritise cross-functional alignment and training to minimise the risk of misreporting and...