Arbind Modi panel in 2018 suggested corporation tax cut; govt didn't accept

Had proposed abolition of dividend distribution tax, securities transaction tax

illustration: ajay mohanty
Illustration: Ajay Mohanty

The first panel on the direct taxes reform, set up by the government to rewrite India’s income-tax laws, had last year recommended a sharp cut in the corporation tax rate to 15 per cent from 25-30 per cent now. It had also proposed equally bold changes such as abolishing the securities transaction tax (STT) and dividend distribution tax (DDT), and restructuring the long-term capital gains (LTCG) tax. The panel, headed by Arbind Modi, then member of the Central Board of Direct Taxes (CBDT), proposed taxing income from dividend and long-term capital gains at the level of ...