Task force to review income tax laws

Tribune News Service

New Delhi, November 22

The government today constituted a task force for drafting a new direct tax legislation which will redraft the more than 50-year-old Income Tax Act and suggest changes in consonance with the economic needs of the country.

During the Rajaswa Gyan Sangam —a conference of tax officers held in September — Prime Minister Narendra Modi had observed that the Income-tax Act, 1961 (the Act) was drafted more than 50 years ago and it needs to be re-drafted.

The overhaul of the indirect tax structure is already underway with the Goods and Services Tax (GST) and the government is now looking at overhauling the direct tax structure.

“Accordingly, 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.

The six-member task force will have Arbind Modi, CBDT Member (Legislation) as the convener and other members, including Girish Ahuja (chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of EY), Mansi Kedia (Consultant, ICRIER), Mukesh Patel, tax advocate, and GC Srivastava, a retired IRS officer.

It will submit its report within six months. Chief Economic Adviser Arvind Subramanian will be a permanent special invitee in the task force.