Income tax payers earning up to Rs 55 lakh per annum may end up with a major tax relief if recommendations to change the tax bracket and rebates are accepted, according to the sources.
The eight member task force, led by Central Board of Direct Taxes member Akhilesh Ranjan, submitted the report to Finance Minister Nirmala Sitharaman on Monday.
ALSO READ: Direct tax committee calls for major changes to reassessment rules
Addressing disruption caused by the US tax reforms last year, the panel has pressed for a corporate tax cut for domestic and foreign companies to 25 per cent from 30 per cent for large companies and 40 per cent for overseas firms. The US had cut corporate tax from 35 per cent to 21 per cent last year.
However, foreign companies may have to pay branch profits tax on the amount repatriated to their foreign partner. This was part of the previous version of the draft Direct Tax Code 2013, too.
“Quite a few recommendations in the report are path breaking, in tune with realities of 21st century. Recommending cut in corporation tax rate to 25 per cent is a great move in the right direction, especially when a lot of competitive economies are cutting rates,” said Arun Giri, group editor, Taxsutra.com, the website which carried details of the main points of the report on Monday.
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First Published: Tue, August 20 2019. 00:49 IST