P Chidambaram to take a fresh look at DTC

• Posted by Sindhuri G August 29, 2012 - Filed in Business - 1,944 views

  NEW DELHI: Finance minister P Chidambaram will take a fresh look at the Direct Taxes Code (DTC), which could further delay the ambitious recast of the income tax law that was to roll out on April 1, 2013, three years behind time.
  
  "DTC has gone through various versions...I need time to look at DTC. I am only 28 days old... It requires a fresh look," Chidambaram said in reply to a question at a press conference.
  
  Chidambaram, who was briefing media after a two-hour meeting with top officials of customs, excise and service tax to take stock of indirect taxes, said he was hopeful that the constitutional amendment bill to facilitated the goods and services tax ( GST) would be passed before the end of financial year.
  
  The overhaul of about 50 year old income tax act was mooted by Chidambaram who had spent many hours personally looking at each and every provision in his previous stint at the finance ministry in UPA-I. Chidambaram had moved to home ministry before the draft could be made public.
  
  The draft, after being made public by his successor former finance minister and now President Pranab Mukherjee, underwent several changes and was substantially diluted when it reached the Parliament in form of a bill. The Parliamentary standing committee headed by senior BJP leader Yashwant Sinha has given its report recommending further changes including a massive increase in personal income tax exemption, tax on wealth above Rs 5 crore at the income tax rate applicable in that slab, abolition of Securities Transaction Tax, retaining corporate tax at 30% and area-based tax exemptions on investments.
  
  To a question if the controversial GAAR would be deferred further, the finance minister said he was awaiting the report of the Shome Committee that is looking into the concerns expressed by foreign and domestic investors.
  
  The DTC has GAAR provisions but the government had advanced its implementation from the current financial year itself in the budget for 2012-13 to counter criticism on its handling of black money issue.