Government Appointed Task Force On Direct Tax Code Submits Its Report To FM Nirmala Sitharaman

A task force appointed by the government submitted its report and suggestions on Direct Tax Code, which seeks to replace the existing Income Tax Act, to Finance Minister Nirmala Sitharaman on Monday (19 August), reports Economic Times.

“Union Minister of Finance and Corporate Affairs Nirmala Sitharaman received the report submitted by Shri Akhilesh Ranjan, Convenor of the Task force constituted by the Government to draft New Direct Tax Law, in New Delhi today," Finance Ministry tweeted on Monday (19 August).

The task force headed by Akhilesh Ranjan, a member of the Central Board of Direct Taxes (CBDT), was supposed to submit its report by 31 May. However, it was given extension of two months to complete the exercise. Subsequently, on the request of the new members of the task force, the government gave it time to submit the report by 16 August.

The task force was assigned to draft direct tax laws in line with the norms prevalent in other countries, incorporating international best practices, and keeping in mind the economic needs of the country.

The task force was constituted after Prime Minister Narendra Modi, while addressing annual conference of tax officers in September 2017, said that the Income Tax Act, 1961 has been in place for more than 50 years and needs to be redrafted.