TASK FORCE FOR DRAFTING A NEW DIRECT TAX LEGISLATION
Aug. 20, 2019
The ‘Task Force for drafting a New Direct Tax Legislation’ submitted its report and a draft of the new proposed version of the Income-tax law to Finance Minister Nirmala Sitharaman.
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.
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