Direct taxes code bill to be introduced in monsoon session: Chidambaram
July, 17th 2013
The government will introduce the official amendments to the Direct Taxes Code (DTC) bill, seeking to overhaul the over 50-year old income tax law, towards the end of the Monsoon session of Parliament.
The session will be held from August 5 to 30.
The DTC bill was introduced in the Lok Sabha in 2010 and Standing Committee on Finance has given a report after its scrutiny.
Finance Minister P Chidambaram on Tuesday said: "The report (of the panel) has come. I completed the exercise in the Ministry of Finance. The official amendments are now being drafted. They will be ready and I will introduce the official amendments in the Parliament towards the end of the Monsoon session and then it is for Parliament to pass it."
The minister said the DTC has gone through entire legislative process except passage in Parliament. "I think we have done our homework and Parliament will pass it".
The DTC aims to rationalise tax rates to bring more people and companies under the tax net.
Among other things, the Standing Committee had suggested raising the income tax exemption limit to Rs 3 lakh as against Rs 2 lakh proposed in the DTC Bill, 2010.
On the proposed Goods and Services Tax (GST), Chidambaram said "one or two state governments" are opposing it.
The Empowered Committee of State Finance Ministers, he said, is working hard on the GST and by-and-large all of them are very supportive.
"The Constitution amendment bill is being drafted. It is being placed before the Council of Ministers (on July 22). Then the GST bill is to be drafted. It will be placed before them," Chidambaram said, adding the two would be placed in Parliament after they are ready.
The GST bill, introduced in Parliament in 2010, is being vetted by the Standing Committee on Finance. After the committee submits its report, the states and the Centre would together to finalise the draft and bring it back to Parliament.
The proposed GST will bring in a common tax regime for goods and services by subsuming most indirect taxes, and is expected to help increase revenue mop ups.
The GST roll out has missed several deadlines on account of differences over contentious issue of Central Sales Tax, compensation and design of the GST structure between the states and the Centre.