Panel formed to simplify direct tax laws

The revenue department in the finance ministry has formed a panel headed by VK Gupta, chief commissioner of income-tax (I-T), to simplify the decades-old I-T Act.

- SHRIMI CHOUDHARY

In its preliminary discussions, the panel focused on rationalising exemptions, raising the computation methods to global standards, and making the appeals system less cumbersome.

During discussions over the past few days and supervised by Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal, it emerged that more than 90 Sections of the 1961 law have lost their relevance, officials privy to the deliberations told Business Standard.

"This (redundant Sections) is especially in the areas of exemptions and deductions, including special economic zones, telecommunications, capital gains, and so on," said one of the officials.

This will also help transition the tax system further towards an exemption-free regime.