FM to release ‘Direct Taxes Code’ tomorrow

FM to release ‘Direct Taxes Code’ tomorrow

Finance Minister, Shri Pranab Mukherjee will release the draft of the Direct Taxes Code and a Discussion Paper tomorrow in the presence of Union Home Minister, Shri P. Chidambaram and Ministers of State for Finance, Shri S.S. Palanimanickam and Shri Namo Narain Meena. The Government will consider inputs and suggestions received from the public before finalising the Direct Taxes Code Bill for introduction in Parliament sometime during the Winter Session.

The draft of the Direct Taxes Code and the Discussion Paper will be uploaded on the PIB website (www.pib.nic.in ) and website of the Ministry of Finance (www.finmin.nic.in ) along with a web based interface for readers to send their comments and suggestions.

The current Income-tax Act was enacted in 1961 to replace the earlier Act which had been legislated before Independence in 1922. More than 50 years have elapsed since the introduction of the current Income-tax Act. The Government had, therefore, announced its intention to introduce a revised and simplified Income-tax Bill while presenting the Union Budget for 2005-06.

Subsequently, work was undertaken on drafting a Direct Taxes Code to replace the current Income-tax Act, 1961 and the Wealth-tax Act, 1957. In his speech in Parliament on 6th July, 2009, while presenting the Union Budget for 2009-10, Finance Minister, Shri Pranab Mukherjee said, “I propose to pursue structural changes in direct taxes by releasing the new Direct Taxes Code within the next 45 days and in indirect taxes by accelerating the process for the smooth introduction of the Goods and Services Tax (GST) with effect from 1st April, 2010. The Direct Taxes Code, along with a Discussion Paper, will be released to the public for debate. Based on the inputs received, the Government will finalise the Direct Taxes Code Bill for introduction in this House sometime during the Winter Session”.