Eight years after he first helped draft a new direct tax code for India, top revenue department bureaucrat Arbind Modi has been handed the task again.
On Tuesday, the ministry of finance said in a media statement that India’s income tax law is over 50 years old and needs redrafting. Hence a task force of seven members has been constituted to draft a new direct tax legislation.
- Arbind Modi, member (Legislation), CBDT
- Girish Ahuja, chartered accountant
- Rajiv Memani, chairman, EY
- Mukesh Patel, advocate
- Mansi Kedia, consultant, ICRIER
- GC Srivastava, retired IRS member and advocate
The media statement says Chief Economic Adviser Arvind Subramanian will be a permanent special invitee in the task force.
The committee’s terms of reference are to draft a new law keeping in mind the prevalent taxation system in other countries, international best practices and economic needs of the country.
“Rewriting a code should have the object of simplifying and reducing disputes,” GC Srivastava told BloombergQuint. Having just received formal intimation from the government he preferred not to get into more detail adding that the committee had yet to meet and decide the parameters of discussion.
The domestic law has to keep pace with the changes taking place on the international level.
GC Srivastava, Retired IRS Member and Advocate
The ministry statement said the task force will be allowed to set its own procedures for regulating its work and shall submit its report to the government within six months.
In order to review the Income Tax Act and to draft a new direct tax law in consonance with economic needs of the country, the Government has constituted a Task Force for drafting a New Direct Tax Legislation.
— Income Tax India (@IncomeTaxIndia) November 22, 2017