After the implementation of common tax with the Goods and Services Tax (GST), now the government has turned its attention towards improving India’s direct tax regime by constituting a task force to review the country’s 56-year old Income Tax law and suggest a new law to replace it.
Today the Finance Ministry formed a task force led by Central Board of Direct Taxes Member Arbind Modi to review the Income Tax Act, 1961 and to formulate a new direct tax law.
Prime Minister Narendra Modi had sought a redrafting of the old Income Tax law to make it simpler and raise India’s low direct tax base, at a meeting with tax administrators this September.
The task force had been given six months to submit its report to the Centre. Hence, a decision on the tax law overhaul is unlikely in the 2018-19 Union Budget.
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