Direct Tax Code...Govt identifies 7 areas for examination

Finance Minister announced that the Government has identified seven critical areas on the Direct Taxes Code for further detailed examination. At an interactive session with representatives of trade and industry, Pranab Mukherjee said that the areas identified after interactions with all stakeholders are: the concept of Minimum Alternative Tax (MAT) based on gross assets; Capital Gains Taxation in the case of non-residents; The Income Tax Act and the Double Taxation Avoidance Agreement (DTAA); General Anti-Avoidance Rule (GAAR); Issues relating to effective management control and taxation of foreign companies in India; Taxation of charitable organizations; and Shift from EEE to EET taxation system. On the apprehensions expressed regarding the time schedule for implementation of the new Direct Taxes Code, the Finance Minister assured that next steps would be taken only after a comprehensive review of the draft by taking on board the suggestions received. "Every effort would be made to meet the aspirations and expectations of our taxpayers and our vibrant corporate sector," Mukherjee said.