Direct Tax Code version 2.0: Reinventing the wheel?

While experts pitch for simpler compliance, they are divided on the need for a new law

The government’s move last week to take a fresh look at the 55-year-old Income Tax Act, 1961, has left experts divided on the need for a new direct tax legislation. While the opinion is divided on whether this requires a new law, experts say making changes in the existing Act can serve the purpose. 

The government, on its part, has given a wide mandate to the seven-member expert group to draft new legislation. This includes bringing the direct tax system in line with international best practices and the current economic needs of the country.

The proposal for new legislation, on the lines