#What_is_Direct_Tax_Code(DTC)?
The Direct Taxes Code (DTC) is an attempt by the Government of India (GOI) to simplify the direct tax laws in India. DTC will revise, consolidate and simplify the structure of direct tax laws in India into a single legislation. The DTC, when implemented will replace the Income-tax Act, 1961 (ITA), and other direct tax legislations like the Wealth Tax Act, 1957.
#The_Regime_so_far: 2009 - 2014
The first draft bill of DTC was released by GOI for public comments along with a discussion paper on 12 August 2009 (DTC 2009) and based on the feedback from various stakeholders, a Revised Discussion Paper (RDP) was released in 2010. DTC 2010 was introduced in the Indian Parliament in August 2010 and a Standing Committee on Finance (SCF) was specifically formed for the purpose which, after having a broad-based consultation with various stakeholders, submitted its report to the Indian Parliament on 9 March 2012.
As a follow-up on this initiative and as stated by the Finance Minister (FM) in his Interim Budget Speech in February 2014, after taking into account the recommendations of the SCF, a “revised” version of DTC (DTC 2013) has been released on 31 March 2014.
#22nd_Nov_2017
The government has formed a task force to draft a new direct tax legislation. The task force will submit its report in six months.
Thanks & Regards
Vinay Reddy
4 Replies
Ashiwini Ballodia
(Managing Partner at TAXounting)
(8737 Points)
Replied 23 November 2017
Nicely Compiled. Great 👍
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 17 April 2020
Through Direct Taxes Code (DTC), the government aims to simplify the structure of direct tax laws in India into a single legislation. The DTC will replace the Income-tax Act, 1961, and other direct tax legislation like the Wealth Tax Act, 1957.
DTC from 2009 to 2014
The first draft Direct Taxes Code Bill was released on August 12, 2009, and then a Revised Discussion Paper (RDP) was in 2010.
DTC 2010 was introduced in Parliament and the government formed a Standing Committee of Finance (SCF) to discuss it with various stakeholders. The SCF submitted its report to Parliament in 2012. The government took into account the recommendations of the SCF and a 'revised' version of DTC was released in 2014. However, it lapsed when the NDA government came to power that year.
Direct Taxes Code from 2017 to 2019
In 2017, Prime Minister Narendra Modi-led government set up an expert committee to draft a new Direct Taxes Code. The report of the task force on DTC was submitted to Finance Minister Nirmala Sitharaman on August 19, 2019. It is yet to be made public. Akhilesh Ranjan, a CBDT member, is the head of the task force. The other members of the task force are Girish Ahuja (chartered accountant), Rajiv Memani (chairman and regional managing partner of EY India), Mukesh Patel (Practising Tax Advocate), Mansi Kedia (Consultant, ICRIER) and G C Srivastava (retired IRS and Advocate).
Direct Taxes Code 2.0
According to a business standard report, the expert panel has recommended a significant increase in the highest income-tax slab, besides slashing the corporation tax rate to an even 25 per cent for both domestic and foreign companies. Income taxpayers earning up to Rs 55 lakh a year might end up with a major tax relief if the panel’s recommendation to change the tax bracket and rebates is accepted.
J S BHAVSAR
(CONSULTING)
(1288 Points)
Replied 13 August 2021
Task force has submitted the report long ago.
When will the draft DTC bill, along with the findings of task force made public?
When will new direct tax code get applicable?
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