India to form new task force to devise fresh direct tax code

India to form new task force to devise fresh direct tax code
19 Oct 2018

The Indian government plans to reconstitute a task force it set up in November last year to draft a new direct tax code.

The former panel, in which Central Board of Direct Taxes member Arbind Modi acted as convenor, was unable to submit an anticipated report following disagreement on crucial aspects of the country’s tax structure such as exemptions for individual taxpayers. Modi retired from the board in September.

But a government official told the Economic Times: “We will soon appoint a new convenor.”

The panel’s remit included drafting appropriate direct tax legislation based on similar systems elsewhere in the world, international best practice and economic needs. It was meant to submit a report within six months and was given a three-month extension until August, but there was disagreement over the basic principles of a direct tax structure and what it should look like.

Modi had also been tasked with drafting a new direct tax code under the previous United Progressive Alliance government. While a number of measures proposed in that code were incorporated in the current income tax law, the rest of the draft was not adopted.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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The Indian government plans to reconstitute a task force it set up in November last year to draft a new direct tax code.

The former panel, in which Central Board of Direct Taxes member Arbind Modi acted as convenor, was unable to submit an anticipated report following disagreement on crucial aspects of the country’s tax structure such as exemptions for individual taxpayers. Modi retired from the board in September.

But a government official told the Economic Times: “We will soon appoint a new convenor.”

The panel’s remit included drafting appropriate direct tax legislation based on similar systems elsewhere in the world, international best practice and economic needs. It was meant to submit a report within six months and was given a three-month extension until August, but there was disagreement over the basic principles of a direct tax structure and what it should look like.

Modi had also been tasked with drafting a new direct tax code under the previous United Progressive Alliance government. While a number of measures proposed in that code were incorporated in the current income tax law, the rest of the draft was not adopted.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

Stronger wage policies required in India to ensure inclusive growth, warns ILO

Indian workers abroad for 182 days not subject to income tax, court rules

Indian tax authorities clarify double taxation situation for overseas workers

 

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