TASK FORCE FOR DRAFTING A NEW DIRECT TAX LEGISLATION

About:

• The Task Force was constituted in November 2017.
  
  
• Akhilesh Ranjan, Member (Legislation), CBDT was the convenor of the task force.
  
  
• The Direct Tax Code will replace the Income Tax Act, which was enacted in 1961.
  
  

Key recommendations are:

• In the four slabs of personal income tax currently, the panel has suggested a rejig in rates between 5 % to 20 %. As of now, for taxpayers below 60 years of age, there’s nil tax on income up to Rs 2.5 lakh, 5 % tax rate for income between Rs 2.5-5 lakh, 20 % tax rate for income between Rs 5-10 lakh and 30 % for income above Rs 10 lakh.
  
  
• Some tweaks have also been suggested for dividend distribution tax and minimum alternate tax.
  
  
• It has also made suggestions on reducing compliance burden by simplification of procedures, and litigation management.