Please explain why the government is coming with a second draft of DTC.

Vinita Kohli, New Delhi

The first draft was in fact not a draft at all — it was introduced in the Rajya Sabha as a Bill. But the DTC Bill ran into trouble with several controversial initiatives. MAT on assets, EET regime on long-term tax-oriented savings, etc., rubbed people on the wrong side.

But it has several pluses like doing away with invidious tax incentives for industries on a selective basis, doing away with soft treatment for gains from stock exchanges, and so on. One hopes while smoothening out the rough edges, the baby is not thrown with the bath water.

S. MURLIDHARAN

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(This article was published in the Business Line print edition dated June 7, 2010)
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