A finance ministry-appointed task force on rewriting the Income Tax Act(IT Act) on Monday submitted its report to finance minister Nirmala Sitharaman, the finance ministry said in a tweet. The move to reform over the five-decade-old IT Act is said to improve the ease of doing business and reduce the compliance burden as well as tax disputes.
Prime Minister Narendra Modi in his previous term announced his plan to rewrite the income-tax law in line with the economic needs of the country and keep pace with the evolving global best practices. The proposals in the draft code are aimed at bringing more certainly to taxation of personal and corporate income as well as capital gains, and bring the gist of numerous judicial pronouncements made since 1961, when the current tax law came into force, in one place for easy reference.
The draft report of the panel headed by the Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan proposes an overhaul of the tax law to make it modern, simpler and easy to comprehend, and at the same time, to widen the tax base.