Govt Appoints taskforce to overhaul Income Tax Law

New Delhi Nov 23: In a move to overhaul the income tax Act (1961) the finance ministry has appointed a six-member task force to draft a new direct tax law that serve the country's present economic needs by widening the tax base, improving compliance and ease of doing business.

The committee would have all the freedom and would review the present income tax act which is 56 years old. The committee would be required to submit its report within 6 months.Arbind Modi, member, Central Board of Direct Taxes, has been named as the convener of the six-member panel.Other members of the panel include Girish Ahuja, chartered accountant, Rajiv Memani, chairman and regional managing partner of EY, Mukesh Patel, advocate, Mansi Kedia, consultant, ICRIER, and G.C. Srivastava, advocate.

Cheif Economic Advisor Arvind Subramanyam would be a permanent special invitee in the task force.The committee would study existing provisions and models in other countries and may come up with a draft law which would be suitable for the country.

Earlier the Government has overhauled indirect taxation system by implementing GST from July 1 and it has merged 17 taxes and 23 cesses to a single tax.

Sources said that the recommendations made by the law would not be implemented from next budget session and may find its way from 2019 budget.