India is yet to decide when it will introduce a new tax on trading in commodities, but there is no legal hitch in framing the rules, a tax official said on Tuesday.

"I can't say when it will be notified. The decision has to be taken at the highest level. There is no legal hitch," Ajai Singh, member of Central Board of Direct Taxes, told reporters on the sidelines of a conference.

In February, Finance Minister Palaniappan Chidambaram proposed the introduction of a commodities transaction tax on exchange-traded commodity futures and options. (Reporting by Rajkumar Ray and Manoj Kumar, Editing by Mark Williams)