Task force on direct tax code to now submit report in August

The government has further delayed its report on a new direct tax code (DTC) which was expected to replace the older Income Tax Act, a senior government official told Moneycontrol.

"The DTC panel is now likely to submit its report on Aug 16," the official said.

The new direct tax code is expected to make personal income tax rates more ‘progressive’ by giving relief to people in the 5 percent and 20 percent slabs. It is also aimed at reforming the complex income tax laws into simpler tax codes with reduced rates, fewer exemptions, and tax slabs.

The Finance Ministry in November last year appointed Akhilesh Ranjan, Member (Legislation), Central Board of Direct Tax, as convenor of the task force after the retirement of Arbind Modi.

Earlier, the task force was supposed to submit its report by May 31, but the then finance minister Arun Jaitley gave two months extension to complete the exercise.

However, Finance Minister Nirmala Sitharaman earlier this month had said that the task force would now submit its report by month end.

Prime Minister Narendra Modi, during the annual conference of tax officers in September 2017, had observed that the Income-tax Act, 1961, was drafted more than 50 years ago and needed to be redrafted.