Will new Direct Tax Code bring back estate duty or inheritance tax? What we know so far
Direct Tax Code: Fearing estate duty, which is also known as inheritance tax or wealth tax, will be brought back in the new Direct Tax Code (DTC) being prepared by a panel?
Direct Tax Code: Fearing estate duty, which is also known as inheritance tax or wealth tax, will be brought back in the new Direct Tax Code (DTC) being prepared by a panel? Here's some relief for you. A DNA report today quoted an official source as saying that the new Direct Tax Code (DTC) panel may not recommend bringing back the estate duty as it could be "very complex". The source told the daily that it is difficult to make an assessment of the stock of wealth than the regular flow of income as assets can be disguised, or even stashed abroad. In 1985, the government had ended estate tax on inherited property. However, rumours of the return of estate tax have been making the rounds for several years. Even during the Budget 2018-19, the return of estate duty was widely speculated.
Currently, there is no tax at the incidence of inherited property. However, the owner is required to pay in lieu of the income earned from the inherited property.
The Direct Tax Code panel will submit its report to the finance ministry by the end of next month. The suggestions might be incorporated in the full budget to be presented by the next government, which will come to power after the end of ongoing Lok Sabha elections 2019.
Task force for new DTC
The Ministry of Finance had announced the creation of a task force for drafting new Direct Tax law in November 2017. An official statement in November 2018 said, "In order to review the Income-tax Act, 1961 and to draft a new direct tax law in consonance with the economic needs of the country, a Task Force was constituted by the Government of India in November 2017. In partial modification of the earlier order, the Government has appointed Akhilesh Ranjan, Member (Legislation), CBDT as Convenor of the Task Force. Other members of the Task Force remain unchanged."
Watch Zee Business TV Live Streaming
The panel was scheduled to submit its report to the Government by February 28, 2019. However, it was extended.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
03:49 PM IST