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President’s Message |
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Respected Fellow Members of our Federation, Hon’ble Finance Minister, Shri Pranab Mukherjee has mentioned in his budget speech that a new Direct Tax Code shall be introduced for bringing out a complete change. The Government of India has prepared Direct Taxes Code – 2009 which has proposed a complete new Income Tax and Wealth Tax provisions by making various drastic proposals. The new Direct Taxes Code proposes to introduce a liberal regime. The Direct Taxes Code promises more savings for the individuals. The proposal is 10% tax on individuals for income between Rs. 1.6 lakhs and Rs.10 lakhs; 20% tax between Rs.20 lakhs and Rs.25 lakhs and 30% tax beyond Rs.25 lakhs. The ceiling on tax saving investment is proposed to be raised to Rs.3 lakhs only as from Rs.1 lakh now. However, the partnership firm and corporations shall be taxed @ 30% and 25% respectively. No separate tax regime for foreign institutional investors who shall be treated at par with other NRIs. Wealth Tax threshold limit for individuals is proposed to be Rs. 50 crores to be taxed @ 0.25% but the definition of “assets” subject to wealth tax has been proposed to be widened. The benefit of income tax under sections 80-C and 80-CCD has been proposed from Exempt Exempt Exempt (EEE) regime to Exempt Exempt Tax (EET) and will be taxed at the time of withdrawal. The proposed rise in deduction limit from Rs.1 lakh to Rs.3 lakhs is said to be the reason from changing EEE regime and EET regime. Under the new tax code an assessee would be allowed to claim benefit up to Rs.3 lakh but at the time of withdrawal he will have to pay tax. Hon’ble Finance Minister has put the new tax code for public debate. Various provisions which are cumbersome and quite harsh needs to be simplified. The proposed 18 Schedule covers the different subjects regarding rate of income tax, other taxes, deduction of taxes at source, procedure for recovery, computation of income etc. are quite important. The Chapter 3 Part H which deals with the tax incentive also needs to be debated. I suggest that the Federation should make representation and give its suggestion on the various clauses of the Direct Taxes Code. I propose that a committee should be immediately formed in different zones who should debate religiously on the various provisions on the Direct Taxes Code and the same should be examined at the national level for the purposes of making a detailed representation at the earliest. I hope and trust that when the new Income-tax Act will be enacted it shall come out after thorough debate and the suggestions given by the different forums shall be considered properly. We should make sincere endeavour to give our concrete suggestions both for G.S.T. and new Direct Tax Code. With personal regards to every member of our own Federation. Jai Hind. |