The apex bodies of industrial houses had requested to bring in amendments to the Finance Bill to facilitate restructuring of companies, he said, adding this could not be carried out as the budget had to be passed without any amendments and discussion in Parliament due to the fall of the Vajpayee Government. However, he said, the Centre would shortly issue notifications to effect whatever changes in this regard were possible.

Speaking at the 15th conference of chief commissioners and director generals of income tax here on Monday, Sinha hoped that the approach would help corporates to restructure themselves and face competition from foreign companies.

Regretting that the Government could not consider the suggestions of the industry with regard to budget proposals, Sinha said, "it is the spirit oflaw rather than the text of law which is important."

He also called upon the tax collectors to gear up to meet this "new challenge" in adopting liberal approach to most of mergers, amalgamations and demergers. Emphasising that an industrial turnaround was visible, the finance minister said the bullish stock market went to show economic stability brought about by his Government policies had overtaken the country's political instability.

The minister said that the economic indicators during the last two to three months were showing positive signals with overall growth during 1998-99 touching 6 per cent. The current-account deficit has been contained at 1 per cent and the fiscal deficit was not allowed to run away to alarming proportion.

Sinha further said that the country had weathered the South East Asian crisis and the sanctions imposed by western nations because of strong economic fundamentals.

Referring to tax collections, the minister said that in view of the momentum of the economy and efforts ofthe Central Board of Direct Taxes (CBDT), it would be possible not only to achieve but also exceed the direct-tax collection target of Rs 59,000 crore during 1999-2000.

Sinha said that the tax base was being widened and approximately 1.6 crore applications for permanent account number (PAN) were received. The number of tax assessees would touch 2 crore in the very near future, Sinha said.

Sinha urged the CBDT to make payment of tax should be made as painless as possible.