NEW DELHI: The government on Friday gave two months extra time to a task force comprising tax officials and outside experts to come up with a new draft direct tax code. Friday’s decision on the tax code is one of the final decisions of the current government led by Prime Minister Narendra Modi before the new cabinet is constituted following the national polls. The proposed new direct tax code will replace the Income Tax Act of 1961. The existing direct tax law, which deals with personal income tax, corporate tax and other levies such as the capital gains tax, has undergone numerous changes over the years. It may also try to make businesses more competitive by lowering the corporate tax rate and phase out the remaining tax exemptions that lead to litigation.

Source: Mint May 24, 2019 16:18 UTC