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New direct tax codes to be tabled soon

Replacing the half century old Income Tax Act, the Central Government presented a landmark draft for a revised Direct Tax Code.

The draft is expected to revolutionise the existing taxation system in India, by ushering in changes in the domains of personal and private tax structures.

Revealing details of the proposed draft, Revenue Secretary Sunil Mitra said on Tuesday that Minimum Alternate Tax would now be computed with reference to book profit, instead of calculating it with reference to "value of gross assets", as had been proposed earlier.

The draft is in the form of a discussion paper, and has taken radical steps to improvise on the paper released in 2009 on the same issue.