Opposition rejects direct tax code draft

Opposition rejects direct tax code draft

New Delhi: The main opposition Bharatiya Janata Party or BJP on Wednesday rejected the Direct Tax Code draft released by the government terming it "a politically deceptive document."

“The Direct Tax Code draft released by the government is unacceptable in the present form if it comes to parliament. It is a politically deceptive document only aimed at increasing the quantum of tax collection for the government and burden for common man," Arun Jaitley, Leader of the Opposition in Rajya Sabha said in a seminar in the national capital.

Jaitley said the direct tax code has been drafted without adequate consultation with all stake holders. Even within the government and Central Board of Direct Taxes the discussions have been inadequate. The preparation of the document has been highly centralized as a result of which the document raises several issues which need an adequate discussion. They require a serious re-look by the government.

“The tax burden on assesses in the category of income from Rs.3 lakh to Rs.10 lakh annually may actually increase. The direct tax code ostensibly places the consumers in the income of Rs.1.6 lakh to Rs. 10 lakh in the 10% bracket. This is an illusion. Allowances such as HRA (house rent allowance), EPF (employee provident fund), deductions, medical, LTC (leave travel concession), leave encashment are entitled to a certain category of exemptions now all will get added to the income and hence become taxable," the BJP leader said addressing a seminar organised by the Confederation of All India Traders. The BJP had earlier announced that the opposition would oppose the proposed direct tax code in Parliament during the winter session beginning 19 November.