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Direct tax code set for next year: FM
May, 13th 2010

The government is giving final touches to draft paper on direct taxes code. If all goes to plan, the new code will come into force from April 1 and will replace the five-decade-old Income Tax Act 1961.

The draft code, which was introduced in August last year, has proposed to put more money in your pocket with major rejig in individual and corporate income tax rates.

The government will soon come out with the draft of the direct tax code, that will be put on the (finance) ministry website for industry and other stakeholders to comment upon, said Finance Minister Pranab Mukherjee at the annual session of the Confederation of Indian Industry (CII) here.

The new code will simplify the rules and procedures with emphasis to make tax rules short, light, and easy to understand by removing redundant provisions and complex terminology. He said that the government is fully committed to implement the goods and service tax.

GST, if adopted, can dramatically alter tax administration by giving a one-shot solution to a welter of levies such as excise, value added tax and octroi.

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