Narendra Modi’s task force member hints at lower tax rates ahead of income tax law revamp:- Mr.Mukesh Patel as saying,In the 70’s, the rate of tax was equal to 97.5%; The income tax, property tax, gift tax and duty of the state were remembered by the Ahmedabad-based tax lawyer Mr.Mukesh Patel, who is now a member of the task force created by the Narendra Modi government, which has been for less than 50 years – 1961. “It was when all the money went abroad in the Swiss account,” Mukesh Patel said, there is a possibility of low tax rates to increase compliance in the future.
In an interview with Mr.Mukesh Patel, Mukesh Patel said, “We are hoping to simplify income tax filing with at least provisions and in this process, the rates have also brought down, but it may take some time.” “Since the 70s, the rate of tax has dropped significantly in 1995, eventually to 30% at the end of the 90s.” Thereafter, tax collection has increased, “he said.
Last week, the Finance Ministry announced the formation of a ‘task force’ to draft a new direct tax law to meet the country’s current economic needs, in 2009 the Direct Tax Code of Congress (DTC) by Shri.P. Chidambaram of Congress, Task Force has been given six months time to present its report to the government. Task Force will repeat income tax law keeping in view of three issues: Direct tax system in other countries, the best international practice of direct tax, and country’s economic requirements.
“In the United Kingdom and America, people were never for income tax offices whenever problems arise, its mail is dealt with, there is no individual interface between citizens and Income Tax officers, in India, people should go to the office This idea is to reduce personal contact or interaction between the common man and the officials so that the process can be made free from trouble. “
Recently, Narendra Modi [PMO] asked the IT officials to switch on the electronic interface to solve harassment and discrimination complaints.
Keeping in view the terms of reference, as Prime Minister Narendra Modi had said that the law was 50 years old and had to face a lot of amendments, we would have to look at the law with two points: international best practice and others tax System country. “Mr.Mukesh Patel said.
“But we can not forget that what is good cannot be copied blindly. It should be in line with the economic needs of the country,” he said.
Prior to this, the DTC bill of Congress created the simplified tax code, eradication of unnecessary exemptions and reduced tax rates. However, the Bill for the dissolution of the 15th Lok Sabha in 2014 was abolished. Since the NDA government came to power in 2014, the government has already implemented the General Anti-Targance Law Guarantee. In 2016, Finance Minister Mr.Arun Jaitley promised to make corporate tax rate up to 25% in five years. Currently, income up to Rs 2.5 lakh per annum is tax-free for individuals.