The committee which has recommended abolition of Tax Rebates under section 88 of the Income Tax Act of India, is

The answer is B) Kelkar Committee. The Task Force on Direct Tax Reforms under Vijay Kelkar (2002) recommended doing away with Section 88 rebates. Its logic was to replace the maze of rebates and exemptions with a broader base and lower rates, which is the direction of direct tax reform.

• Chelliah Committee (A) is wrong. Its 1991 tax reforms report is the one that moved tax concessions towards rebate-based incentives, which is why Section 88 came into existence in the early 1990s. It did not recommend scrapping it.
• Shome Committee (C) is wrong. It dealt with tax policy and tax administration, including the GAAR issue, and is not linked to abolishing Section 88.
• Rangarajan Committee (D) is wrong. It is associated with the Indian economy and the Rangarajan report on the Indian economy and tax issues, not with Section 88 abolition.

The core concept is the shift from tax incentives given through deductions and rebates to lower rates with fewer exemptions. This ties into Mains GS-III, where the tax-GDP ratio, base broadening and the design of direct taxes are recurring themes.

Note that Section 88 was withdrawn in later budgets. Section 87A, a separate rebate for lower-income taxpayers, now exists and should not be confused with it.

Trap: candidates pick Chelliah because it is the famous tax reform committee. Remember that Chelliah introduced the rebate system, and Kelkar is the one that moved to abolish it.