The Direct Tax Code (DTC) is likely to be introduced next fiscal while the Saral-II form for filing tax returns would be out in two months, said top revenue and tax officials of the country on Friday.
Addressing industry captains at the Western Council Meeting of Confederation of Indian Industry (CII), Revenue Secretary Sunil Mitra said, “The government would introduce the DTC bill in the monsoon session of Parliament.” DTC is likely to come into effect in financial year 2011-12.
Chairman of Central Board of Direct Taxes, SSN Moorthy, said, “Saral-II will be out in about two months and will be applicable for salary earners and home owners.” He said that the department was progressing towards a system where there would be minimum interaction between taxpayers and assessors.
The government has pegged the direct tax target at Rs 4 lakh crore for the whole of India, of which Rs 1.42 lakh crore is to come from Mumbai.
On the issue of Goods and Service Tax (GST), Mitra said it is not on the same footing as Direct Tax Code (DTC), as there is a consensus issue.
“Considerable progress has been made on the subject, but basic issues, such as the threshold beyond which tax has to be charged (and) the taxes to be subsumed remain. There are also legal issues, such as whether it attacks the federal frame of constitution,” he said.
However, Mitra expressed confidence of meeting the target in one year if work were speeded up. The finance minister had proposed to implement GST from April 1, 2011.
Touching on the topic of disinvestment, Mitra agreed that retail responses had been disconcerting, but brushed away fears of not meeting the divestment target of Rs 40,000 crore in the next year. “If we can raise Rs 26,000 crore in six months, Rs 40,000 crore should not be a problem,” he said referring to the fund raised by the government in the second half of 2009-10 through the primary market.