The tax structure needs radical change rather than meddling at the corners
In his budget speech in February, finance minister Arun Jaitley in effect said that the Direct Tax Code (DTC) was being buried. The appointment last week of a new committee to rewrite Indian income tax law should be seen against this backdrop. Jaitley had explained that most of the provisions of the proposed code have already been integrated into existing tax law. Jurisprudence under the Income Tax Act is also well developed—even though there is a massive pile of money stuck in litigation. The finance minister concluded there was no merit in going ahead with the DTC.