New Delhi, May 29, 2018
The government has extended by 3 months the term of the Task Force constituted to review the existing I-T Act, 1961 and draft a New Direct Tax Law. With this, the date for sending suggestions and feedback has also been extended.
Now, the stakeholders and the common man can send their suggestions up to June 15, 2018.
The Task Force constituted to draft a new Direct Tax Law as per the economic needs of the country was recently granted 3 more months to submit its report. It was appointed in November 2017 after the government implemented the new indirect tax. It was supposed to submit its report in six months. Last week, the government had extended the term of task force till August end. The task force is chaired by Arvind Modi, a member of the Central Board of Direct Taxes.
In 2009, former Finance Minister P Chidambaram had proposed a Direct Taxes Code (DTC) to replace the existing Income Tax law, but it couldn’t be passed by the Parliament. Under this code, there was a proposal for exemption of income tax up to Rs 2 lakh and imposing of 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh, 20 per cent on income between Rs 5 lakh to Rs 10 lakh and 30 per cent above Rs 10 lakh.
The DTC, revised in 2014, proposed exemption of income tax up to Rs 3 lakh on personal income. It also suggested that the 30 per cent tax rate should be applied on those with income above Rs 25 lakh.
[The Financial Express]