Awaiting Standing Committee report on DTC Bill: Finance ministry

Awaiting Standing Committee report on DTC Bill: Finance ministry

Agra: With the deadline for roll-out of the proposed Direct Taxes Code (DTC) approaching, the finance ministry on Tuesday said it is awaiting the report of a parliamentary panel on the Bill for the new tax regime.

The Direct Taxes Code (DTC), which seeks to replace the Income Tax Act of 1961, is scheduled to come into force from 1 April 2012.

The DTC is an ambitious tax reform that will replace the country’s existing, half-century-old direct tax laws.

Gujral, however, said, “If the report of the standing committee is delayed, then the roll-out date might missed. But if it gets delayed, then obviously it is beyond our control."

In the DTC Bill that was introduced in Parliament last year, the annual I-T exemption limit was proposed at 2 lakh, compared to 1.6 lakh at present.

Under the Bill, the government seeks to widen tax slabs to levy 10% tax on income between 2 lakh and 5 lakh, 20% on 5-10 lakh and 30% above 10 lakh, among other things.

Close