Panel to overhaul, simplify Direct Tax laws – To submit the report by Feb 28
In summon of the last year announcement for the recreation of a new direct tax law, the finance ministry has recently called the appointed task force to submit its reports by 28 February 2019. The ministry last year mediated need for a new direct tax law for the country, for which a special 6 member task force was appointed. It was subjected to work under the direct control of ministry and to submit its motion report to the government within 6 months.
To draft schedules to the new direct tax law, the ministry posited the special task force to work under supreme finance authority of government and abided its supervision to the convener of the panel, Akhilesh Ranjan, member CBDT formally replaced with Arbind Modi, who on 30th September retired and left the group reports in myth.
During the annual conference of tax officials held last year in September, Prime Minister Narender Modi grounded the ministry for ills in the present Income Tax Law saying ‘The law was drafted more than 50 years ago and need to be redrafted’’
The task force will now be conquered by CBDT member Akhilesh Ranjan, including other former members in-house including Girish Ahuja (chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of EY), Mukesh Patel (Practicing Tax Advocate), Mansi Kedia (Consultant, ICRIER) and G C Srivastava (retired IRS and Advocate) and will submit its report by February 28, 2019’, the ministry highlighted in the statement.
Keeping in mind the present economic conditions, corporate businesses and international trade practices, the task force was assigned the duty to frame endurable direct tax policies. Earlier, the panel was supposed to submit its reports within 6 months which was later sufficed with a new timeline by the ministry. Even within the new deadline the committee was not able to submit its report.
Former Finance Minister P Chidambaram in 2009, quoted for declining economy derivatives. He also suggested replacing the cumbersome IT act with a new clean bill scripted with low tax rates and removal of unjust exemptions.
The NDA government made several policy changes to the country’s financial standards, since coming into power from 2014. Even Finance Minister Arun Jaitley promised to lower the corporate tax bracket from 25% to 5%.
The NDA government also announced to initiate its interim budget session for 2018-19 from 1 February and to present the full budget 2018-19 by mid of the coming year after general elections.