New Delhi: The central government can secretly bring in major income tax reforms to reduce the tax burden on income tax payers and simplify compliance. The work to overhaul the existing Direct Tax Law is said to have been completed, but it has been withheld on expectations of the Aam Aadmi Party before the General Budget 2019-20.
It may be mentioned that the task force set up to draft a new law in place of the decades-old Income Tax Act was given two months more time on May 26 to submit its report. The committee was set up in November 2017 when PM Narendra Modi saw that the current law is 50 years old and needs to be drafted again to make it contemporary.
"This (new direct tax law) has been completed," an official told the media. It will be brought after the Budget, because our focus is on the Finance Bill.' the official, though the official has not given any details about it. "If the draft comes now, unnecessary expectations would arise," the official indicated, adding that the new law would not only reduce the tax burden on working people, but also make the process of filing returns easier. This will result in an increase in the number of taxpayers.