Budget could set stage for a new IT Act.

The long-pending overhaul of the country’s direct tax laws could finally gain traction later this year with the Goods and Services Tax (GST) now in place and the Union government sitting pretty with an overwhelming majority.

According to informed sources, the Union Budget 2019-20 could spell out the government’s intent to this effect.

“There has been a move to redraw the Income Tax Act for some time and a committee was also set up. With the government now having a clear five-year mandate and the transition to GST almost complete, the focus will shift to the direct tax laws this fiscal,” 

“The process of redrafting the income-tax law will take some time, as it was the case with the GST. A start may be made later this year, but it could take time to be completed,” said the source, adding that with a clear five-year mandate, it is now possible for the government to draw a roadmap for the overhaul.

 

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