Finance Minister Pranab Mukherjee on Friday indicated the government could rewrite the new direct tax code to make it acceptable to all stakeholders. On the tax code, he said, the government would attempt to build consensus on the proposals. “I have laid a certain proposal in the form of a direct tax code. But it is not the Bhagwad Gita and it cannot be said that it cannot be changed,” he added.
The new draft direct tax code has evoked strong reactions from all quarters—individuals, industry, politicians, ministries and departments. The code proposes to phase out tax exemptions, tax individual retirement savings at the time of withdrawal and impose a minimum alternate tax on gross assets of companies.