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Revised draft of Direct Tax Code in 2-4 weeks: Sources
April, 23rd 2010

The revised draft of the Direct Tax Code is expected in the next 2-4 weeks, reports Media, quoting sources. The treaty override clause may be amended or dropped. The first draft said the domestic law will override treaties.

Media learns that the Minimum Alternate Tax (MAT) may be levied only on book profits or some sectors. The first draft levied MAT on gross assets.

Sources said benefits for special economic zones (SEZs) are likely to remain for some period.

On the tax front, the distinction in long-term and short-term capital gains may stay. Personal income tax slabs may also be re-jigged as compared to the first draft. The clarity of circumstances for implementation of General Anti-Avoidance Rules (GAAR) is likely though.

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