Akhilesh ranjan task force for DRAFTING A NEW DIRECT TAX LEGISLATION

Question 1

About?

Answer 1

The Task Force was constituted in November 2017.

Akhilesh Ranjan, Member (Legislation), CBDT was the convenor of the task force.

The Direct Tax Code will replace the Income Tax Act, which was enacted in 1961.

[BY AKHILESH RANJAN;
DIRECT TAX CODE TO REPLACE IT ACT 1961]

Question 2

Key recommendations?

Answer 2

In the four slabs of personal income tax currently, the panel has suggested a rejig in rates between 5 % to 20 %. As of now, for taxpayers below 60 years of age, there’s nil tax on income up to Rs 2.5 lakh, 5 % tax rate for income between Rs 2.5-5 lakh, 20 % tax rate for income between Rs 5-10 lakh and 30 % for income above Rs 10 lakh.
[CHANGES IN 5-20% TAX SUGGESTED]
[CURRENTLY BELOW 60
2.5-5 LPA = 5%
5-10 = 20%
10+ =30%]

Some tweaks have also been suggested for dividend distribution tax and minimum alternate tax.
[CHANGES IN DIVIDEND DISTRIBUTION TAX(HE SHARES SHI RELATED AHE) & MINIMUM ALTERNATE TAX(TO AMBANI WALA TAX)]

It has also made suggestions on reducing compliance burden by simplification of procedures, and litigation management.
[SIMPLIFICATION OF PROCEDURE ]