Modi’s team drafted a new Direct Tax Code (DTC) with the assistance of a Talented committee.
Ages-ago the Income Tax Act, 1961 were formed and this is now replaced by DTC.
Experience always matters a lot in the direct tax code. With years of work experience, tax experts are expecting a report-generating task force that eases the compliance burden and the ligations that are patterned for the future through consolidation of new drafts of law and orders fetched from multiple high courts and the Supreme Court in settlement issues.
Amrish Shah, who is a partner of Deloitte India, gave an open statement as
“Broadly, easing the tax and compliance burden, bringing in simplification and certainty in tax provisions and compliances, and introducing provisions facilitating merger and acquisition (M&A) activity and other restructuring will be the major asks from corporate”.
The tax and its compliance burden are made easier by passing a simplified tax provision and compliance. The introduction of provisions facilitates merger and acquisition activity along with other major tasks in corporate restructuring.
The expectation is that the new DTC enables tax administration technology via modern law in accordance with the present scenario. Furthermore, continued Mr Rahul Garg, who stands as a Senior Partner (Tax & Regulatory), PwC India, as the tax governance will be made even more efficient and effective shortly.
As the title states, Prime Minister Modi’s ruling since last time has given a limelight idea on the Expert committee set up drafting a new Direct Tax Code (DTC) in place of the old Income Tax Act, 1961. The committee’s ToR (Term of Reference) and constitution differ from those of the earlier one. Thus, the end date for the report submission has been extended thrice, and it has happened till now. The members of the task force are as follows.
Akhilesh Rajan is a Central Board of Direct Taxes (CBDT)member, where the CBDT is the top policy-making department in the Tax Department. This member is appointed as the head of the Task Force.
- Girish Ahuja (chartered accountant),
- Rajiv Memani (chairman and regional managing partner of EY India),
- Mukesh Patel (Practicing Tax Advocate),
- Mansi Kedia (Consultant, ICRIER) and
- G.C. Srivastava (retired IRS and Advocate).
The Key Result Areas of the Tax Department show that the taxpayer’s base has increased, and the panel of experts expects suggestions for simplifying the annual filing process for Income tax returns (ITRs). This is mainly focused on salaried taxpayers.
Riaz Thingna, director of Grant Thornton Advisory Pvt Ltd said, “The biggest thing one can expect is that the settled positions which have come through courts are incorporated so that there are fewer litigation in the future,
Riaz Thingna uttered with a happy note that the incorporation of settled property through court verdict might have only very few litigation when checked for, in the future. Also, Big-4 consultancies tax associate Advisor has intimated that all court orders are incorporated in the new draft law. As, “It will only include those where the Tax Department has got favourable orders,”.
In the meantime, the Task Force report will come in to act while the Indian economy shows a fall score, with most macro indicators showing a slowdown. Multiple automobile divisions and real estate sectors are in a worse situation, facing severe crises in recent years, and are in demand of relief systems as time passes.
