November 23, 2017
The Centre has set up a Panel to formulate a draft direct Tax after reviewing the Income Tax Act, 1961. The proposed law is expected to consolidate the existing laws into one single legislation. The Panel comprises of seven members with Mr. Arbind Modi, member of CBDT (Central Board of Direct Taxes) heading the Panel. The Panel has been given six months to draft a new direct tax law. In an official statement released by the Centre the Panel draft law would be based on the economic needs of the country and would also look into the best practices followed in other countries.
The existing Government has in the past few months implemented essential changes in law. The two important legislation being GST and Insolvency and Bankruptcy Code, 2016 which are still in the process of penetrating into the Indian economy and going through the initial glitches and hitches.
Here it would be relevant to mention that a draft direct tax code had been introduced in 2009 however, after stakeholder objections and consultations the draft did not see light of the day. A modified direct tax code was again introduced in 2014 however has not been taken up by the Government yet.