Revised DTC Bill in the offing

NEW DELHI: The government will come up with a modified Direct Taxes Code (DTC) Bill after incorporating the suggestions of the Standing Committee on Finance, which had suggested a slew of changes to the legislation including raising annual income tax exemption limit to up to Rs 3 lakh.

"Will come out with modified DTC (Bill) in response to standing committee suggestions," said Parthasarathi Shome, advisor to the finance minister at a FICCI event.

In March, the Parliamentary panel headed by senior BJP leader Yashwant Sinha in its report had suggested raising the annual income exemption tax limit to Rs 3 lakh as against Rs 2 lakh proposed in the original DTC Bill. Tax exemption limit is Rs 2 lakh.

"We are trying to see what could be the best in terms of transparency so that issues that are hurting industry could be covered adequately," said Shome, adding that the government is also addressing the issue of expenditure control.

Shome said the way forward in the reform of the fiscal regime was to streamline the tax administration and exercise expenditure control and management.