Direct Tax reforms have been part of India’s fiscal consolidation strategy. Which committee recommended the simplification of direct taxes in post-liberalisation India?

The correct answer is: (D) Kelkar Committee

Explanation:
● The Kelkar Committee (2002), headed by Dr. Vijay Kelkar, recommended simplification of direct taxes in post-liberalisation India.
● It focused on widening the tax base, reducing exemptions, and making taxation more transparent and efficient.

Information Booster:
● Formally known as the Task Force on Direct and Indirect Taxes.
● Suggested replacing exemptions with lower, broad-based tax rates.
● Supported better tax administration through technology.
● Proposed a shift toward GST-like unified tax reforms.
● Influenced later revisions in income tax structure.

Additional Knowledge:
● Option A – Tarapore Committee: Related to capital account convertibility.
● Option B – Dutt Committee: Linked to industrial licensing reforms.
● Option C – Narasimham Committee: Recommended banking & financial sector reforms, not tax simplification.