Govt sets up six-member task force to draft new direct tax law
Chief Economic Adviser
Arvind Subramanian will be a permanent special invitee in the task force
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NEWS : The government on
Wednesday constituted a task force for redrafting the 50-year old income
tax law in sync with the economic needs of the country.
The six-member task force will have Arbind Modi, CBDT Member
(Legislation) as the Convener and other members, including Girish Ahuja
(chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of
EY) and Mansi Kedia (Consultant, ICRIER).
Prime Minister Narendra Modi, during the annual conference
of tax officers in September, had observed that the Income-tax Act, 1961 was
drafted more than 50 years ago and it needs to be redrafted.
"Accordingly, in order to review the Act and to draft a
new direct tax law in consonance with economic needs of the country, the
Government has constituted a task force," a finance ministry statement
said.
The task force will submit its report to the government
within 6 months.
Chief Economic Adviser Arvind Subramanian will be a
permanent special invitee in the task force.
The panel has been tasked to draft a direct tax legislation
keeping in view the tax system prevalent in various countries, the
international best practices and economic needs of the country.
Seeking to replace the existing I-T Act, the UPA government
had in 2009 come out with Direct Taxes Code to simplify the tax legislation for
individual taxpayers as well as corporates.
The Direct Taxes Code (DTC) Bill, 2010, which was introduced
in Parliament in 2010, lapsed with the dissolution of the 15th Lok Sabha.
The Bill had proposed annual I-T exemption limit at Rs 2
lakh, and levying 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh, 20
per cent on Rs 5-10 lakh and 30 per cent above Rs 10 lakh. For domestic
companies it suggested tax rate of 30 per cent of business income.
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