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Budget likely to contain policy statement on tax code
February, 03rd 2010

The governments Union Budget for the year 2010-11, which will be presented on February 26, may feature some procedural aspects of the ambitious direct tax code that aims to overhaul the countrys tax regime and bring taxes under umbrella,  reports quoting sources.

It is learnt that provisions on advance pricing agreement and the general anti-avoidance rule (GAAR) may be considered.

Sources add that provision on the tax treaty override may be considered too and that there would be a suggestion to refer the code to a high-powered expert committee, which would decide the way forward.

The Law Commission played a crucial role in framing the Income Tax Act, 61, which the direct tax code aims to replace.

The code, whose original deadline to be implemented by April 1, is proposed to be introduced from fiscal year 2011-12

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