The government will finalise the revised draft of the Direct Taxes Code (DTC) by next month, Union revenue secretary Sunil Mitra said. It will then gather feedback from the public on the revised DTC, aimed at simplifying the tax structure.
“It will be open for public viewing and comments for 15 days and then the final draft will be prepared,” Mitra said at an interactive session here on Monday organised by the Bengal National Chamber of Commerce & Industry (BNCCI).
While the government came out with the first draft of DTC in August last year, it was supposed to be finalised by end of this month.
According to the Union revenue secretary, the draft DTC will be tabled during the monsoon session of Parliament and is likely to become a law by the next budget session. “The trend in advance corporate tax collection is good. It is also buoyant in case of the indirect taxes like excise and customs duty. We have set a target of Rs 7.5 lakh crore of tax revenue (both direct and indirect) for 2010-11 and it will be revised if required. The total collection in 2009-10 was around Rs 6.31 lakh crore,” he said.
Mitra said the Centre will compensate states for any loss in revenue after GST is rolled out.