New tax code: Bill in Parliament this month

Finance Minister Pranab Mukherjee on Thursday said the government would introduce the Direct Taxes Code (DTC) Bill that will simplify direct tax laws, in the monsoon session of Parliament beginning July 26.

"I intend to introduce draft DTC in monsoon session of Parliament," he said while addressing captains of India Inc at a function organised by the industry chamber Ficci.

The DTC, on which the government had invited public comments twice, will replace the archaic Income Tax Act, 1961.

The government is in the process of drafting the legislation for the DTC, he said, adding, "we want to present the stake holders with a taxation regime which is simple and broad-based leading to lowering of tax rates, better tax compliance and reduced litigation".

The endeavour of the government, he said, will be "to incorporate the best global practices and to use innovative method for attaining equity ... and have well regulated free markets."

He hoped that the new direct tax law, which seeks to substantially change the direct taxes regime, will make "Indian trade and industry globally competitive."

Mukherjee in his Budget speech had indicated the government intention to implement the DTC from April 1, 2011. After holding discussion with the industry and other stakeholders the government came out with a revised DTC draft last month.