Direct Tax Code: Govt ask to send feedback by June 15

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Representational Image
Representational Image

New Delhi : Drafting of new Direct Tax code for the economic benefits of the country has been kept on hold till the government receives valuable suggestions from stakeholders and common man of India. As of now, the government has extended by 3 months the term of the Task Force constituted to review the existing I-T Act, 1961 and draft a New Direct Tax Law. Following the extension, the date for sending suggestions and feedback has also been extended to June 15, 2018. 

A press release issued by the Ministry of Finance mentioned that the feedback and suggestions can be sent through an email at rewriting-itact@gov.in in the format provided on the website of the Income Tax Department – www.incometaxindia.gov.in. Earlier, such feedback/ suggestions were invited till April 2, 2018.

A special Task Force chaired by Arvind Modi, a member of the Central Board of Direct Taxes, has been constituted to draft a new Direct Tax Law as per the economic needs of the country. And, government has recently granted 3 more months to submit its report. It was appointed in November 2017 after the government implemented the new indirect tax. It was supposed to submit its report in six months. Last week, the government had extended the term of task force till August end. 

In 2009, former Finance Minister P Chidambaram had suggested a Direct Taxes Code (DTC) to replace the existing Income Tax law, but due to some reason it couldn’t be passed by the Parliament. Under this code, there was a proposal for exemption of income tax up to Rs 2 lakh and imposing of 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh, 20 per cent on income between Rs 5 lakh to Rs 10 lakh and 30 per cent above Rs 10 lakh.

The Direct Taxes Code, revised in 2014, proposed exclusion of income tax up to Rs 3 lakh on personal income. It also suggested that the 30 per cent tax rate should be applied on those with income above Rs 25 lakh.