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New Income-tax Act likely in 2008
Special Correspondent
| CBDT report on simplifying and rationalising IT laws submitted |
SIMPLIFIED TAX REGIME: CBDT Chairperson, M. H. Kherawala (left), presenting a report on `Simplification of the Income-tax Act 1961' to the Union Finance Minister, P. Chidambaram, in New Delhi on Friday.
NEW DELHI: The new simplified Income-tax Act is likely to come into force from April 1, 2008, replacing the existing Income-tax Act 1961. This was disclosed here on Friday by Finance Minister P. Chidambaram, when a report was submitted to him on simplifying and rationalising income-tax laws.
He said the report, prepared by officials from the Central Board of Direct Taxes, was an exercise for the future and not aimed at amending the existing Income-tax Act 1961. He stressed that the report was about a brand new income tax act, which "if all goes well'' would come into force from Apr 1, 2008. It would, thus, cover assessments made for 2009-10, he said Mr. Chidambaram expressed the hope that the new Act would come into force from April 2008 subject to Parliament approving it well in time.
Meanwhile, he said the existing Income-tax Act, 1961, would continue and whatever amendments had to be done would have to come through the Finance Bill each year.
An official release said the Government would examine the report and decide on further action. It is, however, expected that a Bill based on the report would be tabled in Parliament in the winter session.
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