A report by the Parliamentary standing committee on finance on black money pressed for the earliest introduction of the direct taxes code (DTC) in order to simplify and rationalise direct tax laws in the country.
The chairman of the committee, Veerappa Moily, had said the Income Tax Act, due to its various amendments, had become a ‘fountain of black money generation’, and hence the entire Act needed to be simplified instead of making ad hoc amendments. The reforms in direct taxes are still pending and are not in tandem with reforms in indirect taxes such as goods and services tax (GST). Any amendment in the installment is not going to help, Moily had said.
The committee on direct taxes code, under the Ministry of Finance to overhaul the Income Tax Act and led
by Akhilesh Ranjan, is slated to submit its report on July 31, after two postponements.