Carrying forward ambitious plans of simplifying the country?s direct tax laws, the finance ministry is likely to put out a draft of the proposed Direct Tax Code for public scrutiny by the month-end.
Sources told FE that the draft code is likely to be put on the I-T department’s website?incometaxindia.gov.in?by the of end December for suggestions from all stakeholders.
After necessary discussions and deliberations on the draft with the public, the code might then be introduced in Parliament in its next session in February, they added. If all goes well and it gets Parliamentary approval, it may be enforced from the next fiscal.
The code, which was expected to be tabled in Parliament in its Monsoon session earlier this year, had been put on the backburner after the political turmoil over the Indo-US nuclear deal.
The decision came after finance minister P Chidambaram?s statement earlier in October at the Economic Editor?s Conference that he would ideally like to place a draft of the Code out in the open for public discussion by the year-end.
The Direct Tax Code aims to simplify and replace the existing Income Tax Act 1961. It is also expected to overhaul the current Act by reviewing tax proposals for both individual and corporate taxpayers as well as foreign residents.