Government today said its proposals on withdrawing profit-linked exemptions in Direct Taxes Code will bring in over Rs 50,000 crore and make the exchequer little bit richer despite moderation in tax rates. “Government would bring Rs 55,000 crore worth revenue within the tax net through withdrawal of profit-linked tax exemptions…,” Revenue Secretary Sunil Mitra said here today at a CII seminar on DTC.
Once the DTC is in place, the profit-linked tax exemptions will go.
With this, the revenue impact in the first year (2012 -13) of implementation of DTC will be marginally positive, as per projections made by the finance ministry .
Mitra said with moderation corporate tax rates from present 33.2 per cent to 30 per cent in DTC, the government is projected to loose Rs 38,829 crore in 2012-13.