Union Finance Ministry has given Central Board of Direct Taxes (CBDT) task force tasked with framing draft new direct tax law to replace the existing Income Tax Act, 2-month extension till July 31, 2019 to submit its report. With this extension, the direct tax task force may submit its report after the presentation of full Budget for 2019-20 in July 2019. It was earlier scheduled to submit its report by May 31, 2019.
CBDT task force is India's topmost policy framing body on the income tax. Its mandate is to propose new direct tax code to replace the existing Income Tax Act. The aim is this direct taxation reform is to make complex income tax laws into simpler tax codes with reduced rates, fewer exemptions, and tax slabs.
About task force
Prime Minister Narendra Modi, during the annual conference of tax officers in 2017, had observed that Income-tax Act, 1961, was drafted more than 50 years ago and it needs to be redrafted. He had assured that new Direct Tax Code will be framed to fulfil the economic needs of the country. Besides, this Government also had given full tax rebate to those with income up to Rs. 5 lakh during its interim Budget presented in February 2019. In the upcoming full Budget of the new government in July 2019, Government could announce more tax reliefs.