Task force on direct tax laws to submit report by July 31

  1. The task force set up to draft a new direct tax law to replace the existing Income Tax Act has been given 2-month extension till July 31 to submit its report.The task force was scheduled to submit the report by May 31.
  2. The task force was set up after Prime Minister during the annual conference of tax officers in 2017 had observed that the Income-tax Act, 1961 was drafted more than 50 years ago and it needs to be redrafted.
  3. The objective of the task force is to draft direct tax laws in line with the norms prevalent in other countries, incorporating international best practices and keeping in mind the economic needs of the country.
  4. Direct taxes are levied on a person’s or a firm’s income or wealth.The incidence and impact of the direct tax fall on the same person.Example: Income Tax,Corporation Tax,capital gains tax and Wealth Tax.The impact of direct tax is not Inflationary.
  5. Central Board of Direct Taxes(CBDT) is a statutory authority on direct taxes.It functions under the Central Board of Revenue Act,1963.It is a part of the Department of Revenue in the Ministry of Finance.
  6. CBDT provides inputs for policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the Income Tax Department.

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