India sets up panel to draft new Income Tax Act
A task force for redrafting the Indian Income Tax Act, 1961, to bring it in tune with the current economic needs and realities, was set up by the government on Wednesday, an official statement said.
The six-member task force will have Central Board of Direct Taxes` Member, Legislation, Arbind Modi as the Convener, with chartered accountant Girish Ahuja, consulting firm EY Chairman Rajiv Memani and ICRIER consultant Mansi Kedia as the other members.
"In order to review the Act and to draft a new direct tax law in consonance with economic needs of the country, the Government has constituted a task force," a Finance Ministry statement said, adding that the task force will submit its report to the government within 6 months.
Chief Economic Adviser Arvind Subramanian will be a permanent special invitee to the task force.
According to the statement, the committee has been asked to draft a direct tax legislation keeping in view the tax system prevalent in various countries, the international best practices and economic needs of the country.
The previous UPA government had brought in the Direct Taxes Code Bill, 2010, to simplify tax legislation for both individual taxpayers and corporates. However, it lapsed with the dissolution of the 15th Lok Sabha.
The Bill had proposed annual I-T exemption limit at Rs 2 lakh, and levying 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh, 20 per cent on Rs 5-10 lakh and 30 per cent above Rs 10 lakh. For domestic companies, it suggested tax rate of 30 per cent of business income.
Last year, Finance Minister Arun Jaitley had promised to lower the corporate tax rate to 25 per cent in 5 years.
Currently, income for individuals up to Rs 2.5 lakh per annum is exempt from tax.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
08:42 AM IST