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CBDT invites suggestions for new tax law

The task force to draft a new direct tax law has to submit its report by May-end

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Central Board of Direct Taxes (CBDT) on Wednesday invited suggestions from stakeholders and the general public to prepare new tax law.

A task force has been constituted to review the Income-tax Act, 1961, and draft a new direct tax law in consonance with the economic needs of the country, the government said. The panel has to submit its report by May-end.

"In this endeavour of drafting the new tax law, it is imperative to engage with stakeholders and the general public. Suggestions and feedback are invited from stakeholders and the general public in the format provided on the departmental website www.incometaxindia.gov.in. Feedback may be sent through e-mail at rewriting-itact@gov.in latest by 2nd April, 2018," the finance ministry said in a statement.

Comments have been invited from the public on the issues ranging from filing of returns to processing of refunds, tax credit and disputed tax demands.

Suggestions have been sought from the non-business taxpayers if they face any difficulty in filing income returns without help from professionals and if there are issues in e-filing tax deducted at source (TDS) returns. On the processing of returns, comments have been sought on whether refunds are being processed in time and correctly.

"No doubt, there is a scope for simplification of procedures but the government also needs to focus on simplifying the laws so that litigation could be minimised," says Naveen Wadhwa of Taxmann.

"The government should consider modifying the existing law so that often-disputed tax provisions can be removed and litigation can be reduced."

Tax experts say that general public does not understand income tax laws and will find it difficult to give comments. Only tax professionals will be able to make a point, they point out.

The income tax department has also sought comments on the working of the Income Tax Appellate Tribunal (ITAT) and on levy of penalties for various defaults under the Income Tax Act and on tax evasion.

The government had constituted an eight-member committee under CBDT member Arvind Modi in November last year to draft a new Direct Tax Code. The task force will also study the direct tax system in other countries and also keep in mind international best practices. The UPA government had also drafted DTC and introduced the Bill in Parliament in 2010. The Bill got lapsed with the dissolution of Lok Sabha.

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