Taxing proposal

A new direct tax law panel has limited merit at this time

As a broad principle, the government’s decision to set up a panel to review the Income Tax Act, 1961, is unexceptionable. The current statute is unwieldy, and multiple court rulings over the past five decades have made Indian tax law confusing and opaque. In any case, direct taxes do need a dose of reform to bring them in line with current needs and international best practices. This could include incorporating the latest provisions of base erosion profit shifting (BEPS) and clarity on taxation of new types of business models and digital transactions.  In terms of current realities, however, the government