Buckle Up The I-T Investigation

Finance Minister (FM) Nirmala Sitharaman, in her attempt to boost the slowing economy, announced a cut in corporate tax rates on September 5, 2019, that leads to a forgo of Rs1.45 lakh crore. After an initial pick up, the effect of corporate tax rate cut vanished and there were talks of one more dose of stimulus to bring back the spirit. It was demanded that to address the issue of consumption, personal income tax rate should be slashed,  in order to increase the purchasing power, thus giving a fillip to consumer demand. However, this proposal was rejected and the argument put forward was that the panel appointed to draft the Direct Tax Code (DTC) has submitted its report on August 19, 2019 and its recommendations are under consideration. Media reports indicate, with markets stabilising and the demand for stimulus dying down, the government may accept the recommendations on DTC and...