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Indian FM sets Tax regime for 50 years
November, 10th 2009

Indian Government pointed out that initiative will take place from their side regarding the new direct tax code only after consulting and surveying suggestions from taxpayers and the corporate sector to ensure that the new taxation regime lasts another 50 years.

Finance Minister Pranab Mukherjee stated, The government would make all efforts to meet the aspirations and expectations of taxpayers and the corporate sector before finalisation of the direct tax code.

Mr. Mukherjee mentioned in a statement The next steps in this direction would be taken only after a comprehensive review of the draft DTC by taking on board the suggestions received.

He also added We are trying to bring the new taxation regime, which can last for another 50 years. We want to see that new taxation system includes the basic features and time-tested procedures of the existing Act.

Indian Finance Minister also had a negotiation with Central Board of Direct Tax. He pointed out The outcome of the discussion would be used for modifying the proposals contained in the draft direct tax code,

The Government identified nine critical issues such as minimum alternative tax (MAT) based on gross assets, capital gains taxation in the case of non-residents, Income-Tax Act and the Double Taxation Avoidance Agreement, taxation of charitable organizations and salaried people which will be under review.

 
 
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