The Direct Taxes Code Bill 2009 was a modern piece of legislation based on faith in the assessee, which reduced both sops and tax rates, but had controversial features in taxing savings and minimum alternate tax (MAT). The revised DTC Bill , 2010 is nothing but a tax officers delight, which will breed harassment and corruption.
It keeps the present high tax rates, takes away incentives to infrastructure in real terms and gives sweeping powers to the tax authorities to overturn any transaction, including even tax promoted concepts of mergers and demergers. Such wide powers negate a regime of transparent regulations and reduce Indias competitiveness for global investments.
Regional underdevelopment has created disturbed areas, especially in central India where the government has appealed for job creation through private investment. But for this, we need fiscal stimulators to be built into DTC, 2010. Uttarakhand industries were created due to incentives and can be repeated in such areas creating employment generation.