The first comprehensive draft of the brand new I-T Act will be ready by April-end, and the Bill for amendment to the Act is likely to be introduced in the monsoon session of Parliament, they added.
In Budget 2005-06, the finance minister had proposed full migration from the present exempt-exempt-exempt (EEE) system to the EET regime for all savings. Under the EET system, all savings instruments will be taxed once, i.e., at the time of withdrawal (consumption), while they would continue to be exempt at the stages of investment and earnings thereon.
Mr Chidambaram had not made any mention of the EET regime in Budget 2006-07, but had later said that introduction of the system was a foregone conclusion.
The expert committee has said that on exiting the EET House, tax would be levied on the amount withdrawn at the rate applicable to the individual in the year of withdrawal. The panel also said the EET scheme would operate prospectively. Existing schemes will not be affected by EET.
Small savings schemes under the EEE regime include PFs, deferred annuity plans, post office savings, bank deposits, government securities NSCs.