In another blow to the Government, the Direct Tax Code is once again most likely to miss its already extended deadline of April 2012. It is now being expected to be implemented in April 2013 along with the proposed goods and services taxation (GST).
Direct Tax Code
The DTC that is meant to replace the 50 year old Income tax Act was introduced in the parliament last year and had to come into force in April this year. The Code’s deadline was then later extended to April 2012 since the draft Bill was referred to a Parliamentary standing committee. This committee was to present its report in the ongoing parliament session, but is now most likely to do so in the winter session. A senior finance ministry official stated that “there won’t be enough time. The Act needs to be passed by March 31 for implementation from April 1. If the standing committee report comes in the winter session, the final Bill can at best be tabled in Parliament in the Budget session and it would not be possible to announce the implementation from the next financial year in the Budget without the Act’s passage.” He added that ‘both the IT department and the industry should be given at least nine months to prepare themselves to handle the new framework.’