Good, Bad and Ugly about DTC bill, 2010

Direct Tax CodeThe much awaited introduction of the Direct Taxes Code Bill in the Lok saba is already over. But there seems to be nothing holistic as it was previously expected. It looks like just another annual Finance Bill with marginal tax effects. The lucidity of the previous draft is now gone. It has the same looks as that of the Income Tax Act, 1961. Almost all exemption available in the erstwhile IT Act is still available. The savings limit only marginally increased from 1 lakh to 1.5 lakhs. No more deferential Treatment for Women Assessee. Basic exemption limit increased from 1.6 lakhs to 2 lakhs. Other than this it is almost the old IT act sections rearranged in a new fashion for the common man. The code bill also carries quite many obsolete provisions. For e.g. the definition of an Accountant still includes reference to Section 226 of the Companies Act which is obsolete now. It seems that the government has once again heeded to popular demands. The Direct Taxes Code a judicious mixture of wonders and blunders of the Indian Tax regime

Leave a Reply

Your email address will not be published. Required fields are marked *