Redrafting the Direct Taxes Code (DTC) is proving to be an uphill task for the finance ministry, bombarded with comments from various stakeholders. The Central Board of Direct Taxes (CBDT) has received about 10,000 suggestions on the code, which seeks to replace the Income Tax Act of 1961.
“We have got approximately 10,000 suggestions in the form of emails, letters and presentations. Out of these, only about one-fourth of the comments were sent online. Maximum queries are on Minimum Alternate Tax (MAT) and the exempt-exempt-tax (EET) regime. Our officials have to go through all the suggestions,” said a ministry official on condition of anonymity.
The suggestions, most of which are “repetitive”, are being vetted by a seven-member task force on DTC. The task force was formed only two months ago and is left with just two weeks to go through the suggestions and take them into consideration while drafting the code. Revenue Secretary Sunil Mitra has already said the revised draft of DTC would be released for public debate in the first week of June. The government plans to introduce the code in the monsoon session of Parliament, where it will first be taken up by the Standing Committee on Finance.
The official said comments were received from various quarters, including government departments, and most of these revolved around the nine areas finance minister promised to revisit such as capital gains tax, Double Taxation Avoidance Agreement, taxation of charitable organisations and foreign companies in India, retirement benefits and income from house property.
This is for the first time the finance ministry has received so many suggestions on a proposed legislation. Finance ministry officials say this is because before DTC, no other Bill was released for public discussion.
Another official said the code at this stage was witnessing frequent changes and once a final decision was taken with regard to the amendments, more officials of CBDT would join the task force to prepare the draft in the stipulated time. “We will start the paperwork once things are finalised,” he said.
The redrafted code would be open for public discussion for 15 days. Officials of the revenue department will have to take into account the comments received during this period while finalising the code.
The task force, which operates from an income-tax office at Saket in South Delhi, consists of officers in the grade of commissioner and joint commissioner of income-tax posted as officers on special duty.
TAXING TIMES
# CBDT has received about 10,000 suggestions on the code
# Highest number of queries are on Minimum Alternate Tax and the exempt-exempt-tax regime
# The suggestions, most ‘repetitive’, are being vetted by a seven-member task force
# The revised draft would be released for public debate in the first week of June
# According to ministry officials, before Drect Taxes Code, no other Bill was released for public discussion
# CBDT officials will join the task force to prepare the draft in the stipulated time after a final decision has been taken
Dear Finance Minister
I have a suggestion with respect to many individuals who work in private sector either as consultants or largely one person based entrepreneurs. It is highly desirable and we would like it if for such persons/enterpreneurs a fixed rate of taxation is levied on the revenue they earn during the financial year. It will save lot of hassles on what is taxable and what is not and bring lot of clarity. I believe it will also bring better tax compliance by such individuals and at the same time bring transparency in tax payment. Income tax for such individuals can be fixed based on revenue bracket and payments can be made quarterly and finally full tax payment at end of the financial year. It will bring clarity and transparency in tax liability of all such individuals and I am sure every one would like to contribute toward build India of future by being tax payers and become hassle free in tax.
Rajender
Hey,I would like to tell two simple things:-
(i) Do you people really feel sincerely that why the rich men(businessmen,industrialists etc.) only pay the highest rate of Income Tax ?Are there labours are not enough than the salaried(fatty packed salary)employees ?
(ii) Often it becomes a tradition/stigma of the Indian people to derogate the hard income of the businessmen-especially shop-owners,as it’s related to manual labour–rather the people so called ‘intelectuals’ incomes are usually used to hiped as a honourium !
Avoid such stigmas, encourage businessmens income as a good source for Indian income -rather only to say incomes from salaried people.
It is necessary for the Finance Ministry and the CBDT to consider the plight of the poorest, marginalised section of the society who are nowhere even near the BPL and dependent on the services of charitable organisations for shelter, clean drinking water supply, health care and primary education, etc. While it is not possible for the government machinery to cater to these people living in remote interiors or the slums of the urban mega cities, the Indian charitable organisations with limited financial capacity try to reach out to them and take care. The provisions relating to exemptions to donations to these NGOs have been made so restrictive that the lifelines of the target sector people are adversely affected, for want of approvals, etc., by the income tax authorities. Rampant corruption apart, the officers do not feel impelled by the needs of the poor people being serviced by such NGOs and blindly reject applications for registration or approval etc. Let the Government consider the wider ramifications of the restrictive provisions and an unsympathetic and insensitive bureaucracy by effectively denying the poor people the only helping hands which alone keep them alive.
1o,ooo suggestions that means a new code in the opinion of our expert and each one related to and beneficial to the concerned. What happen when all people send their opinion on that.