CBDT Task force on Direct Tax Code gets one more Extension

Arun Jaitley - CBDT

The Union Finance Minister Arun Jaitley, in a meeting held with the top officials, granted a further extension to the task force on Direct Taxes headed by Central Board of Direct Taxes ( CBDT ). The taskforce can submit their report to draft the new direct tax code till July.

The committee was formed to submit its recommendations on the drafting of the direct tax code. The tax force, headed by Central Board of Direct Taxes member Akhilesh Ranjan, was asked to submit its suggestions to the government by Feb. 28, 2019.

In February, the panel sought for a three-month extension from the Finance Minister Arun Jaitley. The panel asked for a further extension as the current term of the body is ending on May 31.

The new direct tax code is set to replace the existing Income Tax Act. The aim is to reform the complex income tax laws into simpler tax codes with reduced rates, fewer exemptions, and tax slabs. Earlier, the body was supposed to submit its report by May 31, but now it has got two more months to complete the task.

The new Government under the NDA has assured that a new Direct Tax Code would be framed to fulfil the economic needs of the country. The draft legislation is being made considering the stable tax systems in major economies of the world. Once the draft report is out, it’ll be put up for public suggestion to address the concerns of all stakeholders.

Other members of the task force include Girish Ahuja (chartered accountant), Rajiv Memani (chairman and regional managing partner of EY), Mukesh Patel (practicing tax advocate), Mansi Kedia (consultant at Indian Council for Research on International Economic Relations) and GC Srivastava (retired Indian revenue service officer and advocate). The committee’s terms of reference are to draft a new law keeping in mind the prevalent taxation system in other countries, international best practices and economic needs of the country.

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