Awaiting parliamentary panel report on DTC Bill: Finance Ministry

With the deadline for roll-out of the proposed Direct Taxes Code (DTC) approaching, the Finance Ministry today said it is awaiting the report of a parliamentary panel on the Bill for the new tax regime.

The Direct Taxes Code (DTC), which seeks to replace the Income Tax Act of 1961, is scheduled to come into force from April 1, 2012.

"If it does so (the Standing Committee submits its report before the end of the Winter Session), then the timelines are in order. Then we can have it in the Budget Session," Finance Secretary R S Gujral told reporters on the sidelines of the Head of National Drug Law Enforcement Agencies ( HONLEA) meet here.

The DTC is an ambitious tax reform that will replace the country's existing, half-century-old direct tax laws.

Gujral, however, said, "If the report of the Standing Committee is delayed, then the roll-out date might missed. But if it gets delayed, then obviously it is beyond our control."

In the DTC Bill that was introduced in Parliament last year, the annual I-T exemption limit was proposed at Rs 2 lakh, compared to Rs 1.6 lakh at present.

Under the Bill, the government seeks to widen tax slabs to levy 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh, 20 per cent on Rs 5-10 lakh and 30 per cent above Rs 10 lakh, among other things.