TIOL-DDT 341 · Thursday, 13 April 2006 · story 6 of 8

New and simplified income tax law

A new and simplified income tax law is in the offing and the government is working on a comprehensive legislation to replace the cumbersome and voluminous Income Tax Act.

Four working groups have been set up to provide inputs for drafting a new income tax legislation and they would submit their reports by this month-end.

The Finance Minister had announced in last year's budget that a new comprehensive Income Tax Bill would be drafted by 2005-end to replace the archaic law as part of tax reforms.