The Finance Ministry said on Monday that the Task Force will submit its report by February 28 to prepare a new direct tax law to replace the existing Income Tax Act. The ministry had set up a 6-member task force in November last year, which again wrote more than 50 old income tax laws. However, the convener of the panel, Aurobind Modi retired on September 30, who left the Task Force report. On Monday, the Ministry nominated the Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan as the head of the task force. "In partial amendment in the earlier order, the government has appointed Akhilesh Ranjan, Member (Legislative), CBDT as the convener of the Task Force, the other members of the Task Force remain unchanged.
"The Task Force will submit its report to the government till February 28, 2019," the ministry said in a statement. The NDA government will present its interim budget for 2018-19 before the Parliament on February 1. The entire 2018-19 budget will be presented in the middle of next year after the general elections. During the annual tax officials annual conference in September last year, Prime Minister Narendra Modi had observed that the Income Tax Act, 1961 was prepared 50 years ago and needed to be re-prepared. Other members of the task force include Girish Ahuja (Chartered Accountant), Rajiv Yadavani (President of EY and Regional Management Partner), Mukesh Patel (Practicing Tax Advocate), Mansi Kedia (Consultant, ICREER) and GC Shrivastav (Retired IRS and Lawyer) Are there. .
Task Force was entrusted with the draft of direct tax laws keeping in mind the prevailing norms, international best practices, and the country's economic needs. The panel initially had to submit its report to the government within 6 months of May 22, 2018. On May 22, the Ministry of Finance extended the Task Force Period to three months by August 22. The committee did not submit the report within that time frame. Former Finance Minister P Chidambaram had proposed the original direct tax code in 2009 to replace the burden of IT law with a clean new law and to incorporate the principle of reducing taxes and removing the exemption. After coming to power in the NDA government in 2014, has already implemented the rules of general anti-avoidance. In 2016, Finance Minister Arun Jaitley promised to reduce the corporate tax rate by 25 per cent in 5 years. Currently, income up to Rs 2.5 lakh per annum is tax free for individuals.