In what could come in as a big relief for capital market players, the task force on direct tax code that submitted its report to Finance Minister Nirmala Sitharaman last week has recommended abolishing the dividend distribution tax while retaining the Long Term Capital Gains Tax and Securities Transaction Tax, a source in the know of the development told ET Now. The panel has also suggested reworking the personal income tax rates in a bid to make india a more tax compliant. Sources said the panel has recommended three tax brackets of 5 per cent, 10 per cent and 20 per cent against the prevailing structure of 5 per cent, 20 per cent and 30 per cent.

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