Akhilesh Ranjan task force on Direct Tax Code submits Report to Finance Ministry

The task force, headed by CBDT member Akhilesh Ranjan, constituted by the Union government for drafting the new Direct Tax Code (DTC) has recently submitted its report to Union Minister of Finance and Corporate Affairs Nirmala Sitharaman. The task force was constituted to replace the 6-decades-old Income Tax Act 1961. It is believed that the task force has suggested changes in the slab for personal income tax & corporate tax. At present, the personal income tax structure has 3 categories — for people below the age of 60, for people above the age of 60 but less than 80, and the third for people of 80 years and above. Currently, companies with turnover up to Rs 400 crore attract tax at the rate of 25%. This covers 99.3% of all the companies registered. Now, the report is expected to be placed in Parliament as a part of Union Budget 2020-21.