The revised discussion paper on DTC, released on 15.05.2010, has addressed the concerns on all the nine areas that were brought to the notice of the Finance Minister. It has sought to restore the computation of minimum alternate tax (MAT) on book profit basis.
The DTC had proposed MAT on gross assets basis — a proposal that was strongly opposed by corporate India.
Besides restoring tax deduction for interest on home loans for individual taxpayers, the revised paper seeks to come up with a new tax regime for capital gains. The nine areas related to MAT, tax treatment of savings — Exempt-Exempt-Tax vis-à-vis EEE basis, status of double-tax avoidance agreements vis-à-vis domestic law, administration of General Anti-Avoidance Rule, taxation of income from house property on a presumptive basis, special economic zones, tax treatment of capital gains and tax treatment of non-profit organisation among others.
Announcing the release of the revised discussion paper, the Revenue Secretary, Mr Sunil Mitra, told reporters that the paper would be open for public comments till June 30. The Government hopes to introduce a Bill on the proposed DTC in the Monsoon session of Parliament.