Critical
areas on dtc for detailed
examination identified : fm
Finance
Minister has announced that the Government has identified seven critical areas
on the Direct Taxes Code for further detailed examination. At an interactive
session with representatives of trade and industry from all over the country,
here today, Shri Pranab Mukherjee said that the areas identified after
interactions with all stakeholders are: The concept of Minimum Alternative Tax
(MAT) based on gross assets; Capital Gains Taxation in the case of
non-residents; The Income Tax Act and the Double Taxation Avoidance Agreement
(DTAA); General Anti-Avoidance Rule (GAAR); Issues relating to effective
management control and taxation of foreign companies in India; Taxation of
charitable organizations; and Shift from EEE to EET taxation system.
On
the apprehensions expressed regarding the time schedule for implementation of
the new Direct Taxes Code, the Finance Minister assured that next steps would
be taken only after a comprehensive review of the draft Direct Taxes Code by
taking on board the suggestions received. Every effort would be made to meet
the aspirations and expectations of our taxpayers and our vibrant corporate
sector.
Shri
Mukherjee said that it has been the endeavour of the government to incorporate
the best practices prevailing across the globe and to use innovative methods
for attaining equity—vertical and horizontal, ensure growth with
sustainability, create stable fiscal eco-system and have well regulated free
markets. The new Direct Tax system would also take into account established and
time tested practices which have withstood judicial scrutiny. He said, “We want
to present the stakeholders with a tax regime which is simple and broad based
leading to lowering of tax rates, better tax compliance and reduced
litigation.”
The
Finance Minister said that it has been two months since the proposed draft
direct tax code was released for public debate and he was moved by the amount
of interest and intellectual debate it has generated amongst various sections
of taxpayers, tax professionals and general public. We are receiving thoughtful
feedbacks on our website and through other means—trade and industry
associations, professional bodies and others, he added.
Shri
Mukherjee said that he has kept his promise by putting the draft code in public
domain within 45 days and he would like to expedite to give it a final shape.
While thanking the industry and trade associations for enthusiastically
participating in today’s deliberations, Shri Mukherjee said that he looks
forward to their suggestions in making the new Direct Taxes Code an effective
instrument for meeting the economic challenges and development priorities of
the country. The outcome of the discussions would be used for modifying the
proposals contained in the draft Direct Taxes Code, the Minister said.
Minister
of State for Finance, Shri S.S. Palanimanickam, Revenue Secretary, Shri P.V.
Bhide and senior officers of the Finance Ministry were also present at the
interactive session.
[BSC/BY/GN-349/09]