Draft direct taxes code due for major revision

The government has planned a detailed review of the draft direct taxes code following apprehensions raised over the time schedule for its implementation, finance minister Pranab Mukherjee said today.

Speaking at an interactive session with representatives of trade and industry from across the country, Mukherjee said the next steps in implementaton 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 taxpayers and the corporate sector, the minister added.

The government, he said, has identified seven critical areas of the direct taxes code for further detailed examination.

Mukherjee said after interaction with stakeholders, the finance ministry has identified '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 organisations and the shift from EEE to EET taxation system as the areas needed for detailed examination.

He said the government would try "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."