New tax code is a heavyweight loaded with details
The proposed Direct Taxes Code, which will replace the archaic Income Tax Act, is bulkier than the existing law, as the new legislation also seeks to substitute the current Wealth Tax Act.business Updated: Aug 30, 2010 22:52 IST
The proposed Direct Taxes Code (DTC), which will replace the archaic Income Tax Act, is bulkier than the existing law, as the new legislation also seeks to substitute the current Wealth Tax Act.
While the proposed DTC has 319 sections and 22 schedules, there are 298 sections and 14 schedules in the existing act.
The Wealth Tax Act, 1957, itself has 47 sections and three schedules.
As per the bill placed in the Lok Sabha by Finance Minister Pranab Mukhejee, the DTC, which will replace the Income Tax Act 1961, has 20 chapters divided into nine parts.
Various parts of the DTC deal with a plethora of subjects, including income tax, dividend distribution tax, tax on distributed income, branch profit tax, wealth tax, prevention of abuse of the code and interpretation of the code.
Its sections deal with issues such as basis of charge of the tax, computation of total income, foreign tax credit, income from business and residuary sources, capital gains, tax incentives, special provisions relating to the computation of total income of non-profit organisations, deduction at source, advance tax and payment of wealth tax.