The government will shortly come with a new draft of the direct taxes code that will be put for public comments within a month for addressing concerns of all stakeholders.
“The revised draft on the direct taxes code (DTC) will be put in the public domain shortly. I am confident it will take care of all the concerns expressed by various stakeholders," Finance Minister Pranab Mukherjee told the annual conference of chief commissioners and directors general of income tax here on Wednesday.
Central Board of Direct Taxes Chairman S.S.N. Moorthy later told newsmen the revised draft will be out within a month.
The DTC, the first draft of which was released for public discussion in August last year, had proposed a sweeping rejig of the existing tax slabs that would benefit each one of India’s 3.15 crore-odd crore tax payers.
Under the proposed norms income tax would be charged at 10 per cent tax for income between Rs 1.6 lakh and Rs 10 lakh, 20 per cent between Rs 10 lakh and Rs 25 lakh and 30 per cent beyond Rs 25 lakh.
The code proposes to bring down the corporate income tax rate to 25 per cent from the present 34 per cent.
It also proposes to abolish the securities transactions tax—a move that is likely to bring cheer in the equity markets.
The first draft, however, drew criticism from certain quarters for its proposal to tax long-term savings at the time of maturity or withdrawal, imposing minimum alternate tax (MAT) on the basis of gross assets as against profits at present, and its silence on offering tax rebates for home loans.
“A new DTC draft is under revision taking into consideration the areas of concern expressed by various stakeholders,” Mukherjee said.
“The discussion paper will be shortly in the public domain before introduction in parliament in the forthcoming monsoon session. It will indeed be legislation for the 21st century, which will witness the emergence of an economically strong and vibrant India.”