Govt to look into concerns on draft Direct Tax Code

The government today said it will address concerns of corporate and other tax payers on issues like taxation on the salaried, long-term savings and minimum alternate tax before putting the new Direct Tax Code regime, which will replace the archaic Income Tax Act, in place.     

"The government will make all efforts to meet the aspirations and expectations of the taxpayers and the corporate sector before finalisation of the Direct Taxes Code," Finance Minister Pranab Mukherjee told a Parliamentary panel.     

He said the next steps in this direction would be taken only after a comprehensive review of the draft Direct Tax Code by taking on board the suggestions received.

"We are trying to bring the new taxation regime, which can last for another 50 years. Therefore, our endeavour is to see that new taxation system should include the basic features and time tested procedures of existing act, which have survived judicial security over the years," he added.

The Finance Minister told Parliamentary consultative committee attached to his ministry that he has started discussions within the Central Board of Direct Taxes on the suggestions received so far.

"The outcome of the discussion would be used for modifying the proposals contained in the draft Direct Tax Code," he said.     

On the basis of feedback, he named critical areas in the code as — Minimum Alternate Tax, Capital Gains Taxation in the case of non-residents, Double Taxation Avoidance Agreement, taxation of foreign companies in India, taxation of long term savings, taxation on the salaried.