Aug 26, 2010
Direct Tax Code - Highligts
TheNew Direct Tax Code (DTC) is said to replace the existing Income Tax Act of 1961 in India - and would be presented in the winter session of the Parliament. It is expected to be passed in the monsoon session of 2010 and is expected to be enforced from 2011. During the budget 2010 presentation, the finance minister Mr. Pranab Mukherjee reiterated his commitment to bringing into fore the new direct tax code (DTC) into force from 1st of April, 2011.
The new code will completely overhaul the existing tax proposals for not only individual tax payers, but also corporate houses and foreign residents. It has been drawn with inspiration from the prevailing tax legislation in US, Canada, UK. It is a topic of interest and a matter of concern for every taxpayer in India. The new DTC also seeks to take the bold step of moving from EEE (Exempt-Exempt-Exempt) to EET (Exempt-Exempt-Taxed) system of taxation for various investment avenues, most importantly the PPF. The most striking feature is the rationalization level of tax slabs at various levels. The proposed slabs suggest a major overhaul in the intent of CBDT. A glimpse of the intended structure has already been seen in the Union Budget 2010 wherein the tax slabs have been liberalized to a great extent. More on Budget 2010
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