Direct Tax Code Shelved ??

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The tone and tenor of the Finance Minister, who is quoted in media saying  “DTC has gone through various versions…I need time to look at DTC. I am only 28 days old (in the finance ministry) … It requires a fresh look,” has clouded the prospect of the implementation of Direct Tax code from 1^st April 2013 , as was declared earlier during Pranab Mukerjee term as Finance Minister.

It is for sure that Direct Tax Code may miss the bus and may not get the chance of riding bus before election for 2014. That the answer of Finance Minister is clear indication of the intent is too clear to ignore about the prospect of the implementation of DTC .It is official. Direct tax code (DTC), aimed at simplifying procedures and increasing compliance, is unlikely to be implemented in April 2013.

The code was introduced in Parliament in August 2010 by Pranab Mukherjee, the then Finance Minister. The Bill, meant to be passed in April 2012 , got deferred on account of pendency of report by  parliamentary standing committee on the  controversial retrospective tax proposals.

To a question whether General Anti Avoidance Rules (GAAR) would get postponed again, Chidambaram said, he was awaiting the report of the Shome Committee, which is looking into the concerns expressed by foreign and domestic investors.