Updated By: LatestGKGS Desk
Task Force for drafting a new Direct Tax Legislation submitted Report for new IT Law
New Income-tax law recommends rejigging in rates for tax-payers
The 'Task Force for drafting a New Direct Tax Legislation' submitted its report and a draft of the new proposed version of the Income-tax Law to Finance Minister Nirmala Sitharaman.
About:
- The Task Force was constituted on November 2017.
- Akhilesh Ranjan, Member (legislation) CBDT, was the convenor of the task force.
- The Direct Tax Code will replace the Income Tax Act, which was enacted in 1961.
Key Recommendations are:
- In the four slabs of personal income tax currently, the panel has suggested a rejig in rates between 5% to 20%. As of now, for taxpayers below 60 years of age, there is nil tax on income up to Rs 2.5-5 lakh, 20% tax rate for income between Rs 5-10 lakh and 30% for income above Rs 10 lakh.
- Some tweaks have also been suggested for dividend distribution tax and minimum alternate tax.
- It has also made suggestions on reducing the compliance burden by simplification of procedures, and litigation management.
