Simplification of tax structure will help in compliance, P V Bhide, IAS, Revenue Secretary, Ministry of Finance, Government of India has said. Speaking at an interactive session on Direct Taxes Code Bill 2009 organised by FAPCCI and CII, he said, ``We are bringing all direct taxes under one code.
And we want to ensure there are minimal amendments. It was observed that the Minimum Alternate Tax (MAT) may adversely impact industries having long gestation period and it is a liability even on loss making entities.
Further, the distinction between short term capital gain and long term capital gain will be eliminated, leaving an impact on investment environment.
The Government has taken a major step forward in direct tax reforms by formulating a new Direct Taxes Code (DTC), which will facilitate voluntary compliance and help increase the tax-GDP ratio.
Besides, it will reduce the scope for disputes and minimize litigation, opined K Harishchandra Prasad, president of FAPCCI.