Finance Minister Pranab Mukherjee today said the government will try to plug tax leakages through the proposed Direct Taxes Code (DTC) which will make the taxation regime transparent and predictable.
“We are in the process of bringing in a new Act — Direct Tax Code — which will help in bringing transparency and predictability to the framework of law. We also intend to plug some loopholes which lead to tax leakages,” he said after inaugurating an Income Tax building and an ‘Aikar Seva Kendra’, here.
The government had already introduced the DTC Bill in Parliament which is likely to be taken up for discussion and passage in the Monsoon Session next year.
The DTC, which is slated to come into force from 2012-13 fiscal, will replace the Income Tax Act, 1961.