Government gives extension to Task Force on Direct Tax LawsDate: 27 May 2019 Tags: Commissions & Committees
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
- It was constituted in November 2017 by Union Finance Ministry to review Income-tax Act, 1961 and to draft new direct tax law in consonance with the economic needs of the country.
- Composition: Akhilesh Ranjan, Member (Legislation), CBDT is convenor of the task force. Other members are Rajiv Memani (Chairman and Regional Managing Partner of EY), Girish Ahuja (chartered accountant), Mukesh Patel (Practicing Tax Advocate), Mansi Kedia (Consultant, ICRIER) and G C Srivastava (retired IRS and Advocate).
- Mandate: Draft appropriate Direct Tax Legislations (laws) in line with the norms prevalent in other countries, incorporating international best practices, and keeping in mind the economic needs of the country.
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.