CBDT task force gets 2 month extension to draft new direct tax code

Finance Minister Arun Jaitley has given the Central Board of Direct Taxes (CBDT) task force an extension of two months to draft a new Direct Tax Code which will simplify complex income tax laws.

CBDT member Akhilesh Ranjan had sought an extension as the current term of the body ends on May 31. At a meeting held with top officials of the Finance Ministry, Jaitley on Friday gave the CBDT task force an extension till July.

The aim is to reform complex income tax laws into simpler tax codes with reduced rates, fewer exemptions and tax slabs. Once the draft report is ready, it will be put up for public suggestions to address the concerns of all stakeholders.

Meanwhile, the Income Tax Department has extended the due date for depositing tax deducted at source (TDS) for April from May 7 to May 20 for residents in cyclone-hit Odisha, according to an official statement.

Also, the due date of filing of quarterly statement of TDS for the last quarter of the financial year 2018-19 has been extended to June 30 from May 31.

At the same time, senior citizens with a taxable income of up to Rs 5 lakh can now submit Form 15H to claim exemption from TDS on interest income on deposits in banks and post offices.

Earlier, the limit for seeking TDS exemption was Rs 2.5 lakh. The interim Union Budget 2019-20 gave a full tax rebate to individuals having a taxable annual income of up to Rs 5 lakh, benefitting about three crore middle-class taxpayers.

The CBDT has issued a notification amending Form 15H to give effect to the Budget announcement. The amendment states that banks and financial institutions would accept Form 15H from assessees whose tax liability is nil after considering rebate available under Section 87A of the Income Tax Act 1961.

Senior citizens above 60 years of age have to submit Form 15H to banks at the beginning of a financial year to ensure that no tax is deducted at source on interest income.

.