15 Days to FREEDOM! Proposals to get rid of old Income Tax laws may come on this date

Prime Minister Narendra Modi-led Union Government has once again extended the deadline of the task force for the formulation of a new direct tax code. The Task Force was constituted by the Government in November, 2017 to review the existing Income-tax Act, 1961 and to draft a new direct tax law in consonance with economic needs of the country. The committee was required to submit its report by 31st of July, 2019.

The Ministry of Finance said in a statement on Wednesday that the "Government has allowed the Task Force to submit its report by 16th of  August, 2019, in light of the fact that the new Members of the Task Force requested for more time to provide further inputs."

The task force set up to draft a new direct tax law to replace the existing Income Tax Act was earlier given two-month extension till July 31 to submit its report. Before this date, the task force was scheduled to submit the report by May 31.

In November last year, the Finance Ministry had appointed Akhilesh Ranjan, Member (Legislation), CBDT, as convenor of the task force after the retirement of Arbind Modi. Other members of the task force include Girish Ahuja (chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of EY), Mukesh Patel (Practicing Tax Advocate), Mansi Kedia (Consultant, ICRIER) and G C Srivastava (retired IRS and Advocate).

The task force has 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. 

During the annual conference of tax officers in September 2017, Prime Minister Narendra Modi had observed that the Income-tax Act, 1961, was drafted more than 50 years ago and it needed to be redrafted.