The government on 1 March 2016 set up a 10-member panel to simplify the over 50-year-old Income Tax Act, a move aimed at ensuring certainty in tax policy for ease of doing business.
The panel, headed by retired Delhi high court judge R V Easwar, has also been tasked with identifying provisions and phrases in the I-T Act, which are leading to litigation due to different interpretations. The term of the committee is for one year and the first report is expected by January 2016. The government is likely to include some of the initial recommendations of the panel in the 2016-17 budget
"We have been resolving a lot of past issues over the last few months and now time has come to look at some provisions of the I-T Act, to look at how their drafting quality can be improved in order to avoid ambiguity so that everybody is certain as to what the Act itself says," said finance minister Arun Jaitley.
The panel has also been asked to suggest alternatives and modifications to the existing provisions and areas to bring about predictability and certainty in tax laws, without substantial impact on the tax base and revenue collection.