The government will introduce the Direct Taxes Code by April 2011 after examining thoroughly seven proposals such as taxing savings schemes and clamping the Minimum Alternate Tax (MAT) on gross assets that have not found favour with the industry, trade and people at large.
After an interaction with industry chambers here today, Finance Minister Pranab Mukherjee said, "The new Direct Taxes Code would have to be passed in the Parliament. It is to be effective from 2011."
He said the Code would be implemented only after "a comprehensive review" of the proposals.
Revenue Secretary P V Bhide said, "The draft would be tabled in the Parliament during the winter session or the following session in February."
The other DTC proposals, which would be scrutinised by the finance ministry, deal with capital gains tax on NRIs, double taxation avoidance agreements, taxation of foreign firms and charitable organisations, Mukherjee told the trade and industry representatives.
The DTC proposed to bring all savings schemes under an EET (Exempt Exempt Tax) taxation system, which would require people to pay tax at the time of withdrawal of money.