Wednesday, Apr 24, 2024 | Last Update : 08:43 PM IST
Centre sets up panel to rewrite income-tax law
The panel’s recommendations may have far-reaching implications and will change the way people now pay income-tax.
New Delhi: After reforming indirect taxes by introducing the Goods and Services Tax, the Narendra Modi government is now planning to reform direct taxes.
On Wednesday the Centre said it was setting up a task force to review the 55-year-old Income-Tax Act 1961, and draft a new law on direct taxes in consonance with the country’s economic needs. It will submit its report to the government within six months.
The panel’s recommendations may have far-reaching implications and will change the way people now pay income-tax. It may even seek to rationalise tax rates for both individuals and corporates.
The task force is expected to simplify the nation’s direct tax laws, and comes after Mr Modi said at the Rajaswa Gyan Sangam in September that the Income-Tax Act, drafted over 50 years ago, needed to be redrafted.
The six-member task force will have Arbind Modi, CBDT member (legislation) as convenor, and include Girish Ahuja (chartered accountant), Rajiv Memani (chairman of EY) and Mansi Kedia (ICRIER consultant). Dr Arvind Subramanian, chief economic adviser, will be a permanent special invitee.
The finance ministry said the task force will draft the new direct tax legislation keeping in view tax systems in various countries and international best practices.
