NEW DELHI: The government has set up a six-member task force to redraft the 50-year-old income tax law in sync with the economic needs of the country.The task force has been mandated to draft a direct tax legislation keeping in view the tax system prevalent in various countries, the international best practices and economic needs of the country.
Arbind Modi, CBDT member (legislation) will lead the task force as the convener and other members, including Girish Ahuja (chartered accountant), Rajiv Memani (chairman and regional managing partner of EY) and Mansi Kedia (consultant, Indian Council for Research on International Economic Relations).
Chief Economic Adviser Arvind Subramanian will be a permanent special invitee in the task force.
It will submit its report to the government within six months.
The terms of reference of the task force is to draft an appropriate direct tax legislation keeping in view the direct tax system prevalent in various countries, the international best practices and the economic needs of the country.The task force was set up following the observation made by Prime Minister Narendra Modi during the annual conference of tax officers in September that the Income-tax Act, 1961 was drafted more than 50 years ago and it needs to be redrafted.
“Accordingly, in order to review the Act and to draft a new direct tax law in consonance with economic needs of the country, the government has constituted a task force,” a finance ministry statement noted.