The government on Monday said that the revised draft of the Direct Taxes Code (DTC), which is aimed at simplifying the tax structure, would be made available for public comments in the first week of June.
“Revised discussion note on the Direct Tax Code will be revealed in the first week of June and will remain open for (public comments ) for 15 days,” Union Revenue Secretary Sunil Mitra said at the Bengal National Chamber of Commerce and Industry function.
He was hopeful of DTC becoming a law by the next Budget session. “By Budget session, it should be a law,” Mitra said.
Finance Minister Pranab Mukherjee has also said that the bill on DTC was likely to be tabled in the monsoon session of Parliament.
The government had come out with the first draft on DTC in August last year.
However, it drew flak from certain quarters for its proposals such as imposing a minimum alternate tax on gross assets and taxing long-term savings at the time of withdrawal.
The silence on giving income tax rebate on housing loans was also criticised and these grievances are expected to be addressed in the revised draft.
The Finance Minister has said that in all nine concerns were considered while revising the first draft.
DTC is expected to replace archaic Income Tax Act, 1961 by next fiscal and present a simple direct tax structure to the country.
The revised discussion paper on the Direct Tax Code (DTC) seems to be new draft has abandoned the intent and spirit of the originally proposes draft. Its like old wine in same bottle.