India moots tax reforms bill, likely by end 2009

Finance Minister Pranab Mukherjee on Wednesday announced that India proposes to reform its archaic tax laws, phase out exemptions, simplify rules on corporate mergers and help improve compliance. Complex laws and procedures have led to litigations, encouraged large-scale evasion and prevented the cash-strapped government to shore up revenues in a country of 1.1 billion-plus people. The new direct tax code would be a vast improvement over Income Tax Act 1961.