The government has allowed Task Force which was constituted in November 2017 to review existing Income-tax Act, 1961 and draft a new direct tax law, to submit its report by August 16 in the light of the fact that new members of task force requested for more time to provide further inputs.
"A 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 need s of the country. It was required to submit its report by 31st of July, 2019," read a statement issued by the Central Board of Direct Taxes (CBDT).
The earlier deadline for the Task Force was May 31. However, then Finance Minister Arun Jaitley had given the body an extension of two months to draft a new Direct Tax Code which will simplify complex income tax laws.
CBDT member Akhilesh Ranjan had sought an extension as the current term of the body ends on May 31.
The aim is to reform complex income tax laws into simpler tax codes with reduced rates, fewer exemptions and tax slabs. Once the draft report is ready, it will be put up for public suggestions to address the concerns of all stakeholders.
( With inputs from ANI )