New Delhi: The Central Board of Direct Taxes (CBDT) has expanded the terms of reference for the committee that has been formed to re-write the Direct Tax Code (DTC) which will simplify complex income tax laws.
The committee will now have to consider five more areas while drafting their recommendations, making the total terms of reference nine.
The new terms of reference are — faceless and anonymised scrutiny, mechanism for system based cross verification of the financial transactions, reduction in litigation and expeditious disposal of appeals before the CIT (Appeals), ITAT (Income Tax Appellate Tribunal), High Courts and Supreme Court, reduction of compliance burden by simplification of procedures, and sharing of information between GST, Customs, CBDT and FIU (Financial Intelligence Unit), according to a government notification issued on Wednesday.
The government has also nominated two new members — Chief Economic Advisor Krishnamurthy Subramanian and Joint Secretary (Revenue) Ritvik Pandey to be the part of the direct tax code panel.
In September 2017, Prime Minister Narendra Modi said that there was a need to re-draft the direct tax Act.
Subsequently, the government constituted a task force and directed it to submit a report in six months.
However, the deadline has been extended several times. The latest deadline given by the Centre is July 31.
The aim is to reform complex income tax laws into simpler tax codes with reduced rates, fewer exemptions and tax slabs. Once the draft report is ready, it will be put up for public suggestions to address the concerns of all stakeholders.
[source_without_link]ANI[/source_without_link]