Finance Ministry bombarded with comments regarding tax code
May, 26th 2010
As the Finance Ministry is gearing up for re-drafting the direct tax code (DTC), it is getting innumerable comments from various stakeholders regarding the code.
The ministry has received around 10,000 comments and suggestions regarding the code till now. The DTC is going to be implemented by 2011 and would be replacing Income Tax Act of 1961.
"We have got approximately 10,000 suggestions in the form of emails, letters and presentations. Out of these, only about one-fourth of the comments were sent online. Maximum queries are on Minimum Alternate Tax (MAT) and the exempt-exempt-tax (EET) regime. Our officials have to go through all the suggestions," said a ministry official.
The suggestions, mostly repetitive are sorted by a task force of seven people set for the purpose. The task force was formed two months back and has two weeks left to go through all suggestions.
According to revenue secretary, Sunil Mitra, the revised draft of DTV would be brought out in public by the first week of June.
Comments have so far been received from several varied sectors like including government departments, and most of these revolved around the nine areas finance minister promised to revisit such as capital gains tax, Double Taxation Avoidance Agreement, taxation of charitable organisations and foreign companies in India, retirement benefits and income from house property.
According to another official, the code at this stage is undergoing several changes and once the final amendments have been made, more officials from CBDT would join in so as to prepare the draft in the scheduled time.
The draft would be left in public forum for 15 days, the official said.