In 2002-2003, the Government of India set up a committee to review the fiscal reforms both in respect of Direct and Indirect taxes under the chairmanship of _____.
Show answer & explanation
Correct answer: A
Explanation
Kelkar Committee 2002-2003 -
The Government of India constituted a high-level committee in 2002 under the chairmanship of Dr. Vijay Kelkar to review fiscal reforms related to direct and indirect taxes.
Main objectives: Simplify the tax system, broaden the tax base, and bring transparency in tax administration.
Key recommendations:
1. Raise the income tax exemption limit and reduce tax rates.
2. Reduce corporate tax and eliminate various deductions.
3. Prepare an initial framework for the implementation of GST in India.
4. Suggest abolish the wealth tax.