Finance Minister P. Chidambaram today said that official amendments to the DTC Bill, which seeks to overhaul the over 50-year-old income-tax law, will be introduced towards the end of monsoon session of Parliament starting August 5.
The Direct Taxes Code (DTC) Bill was introduced in Lok Sabha in 2010 and the Standing Committee on Finance has given a report after its scrutiny.
“The report (of the panel) has come. I completed the exercise in the Ministry of Finance. The official amendments are now being drafted.
“They will be ready and I will introduce the official amendments in Parliament towards the end of the monsoon session and then it is for Parliament to pass it,” Chidambaram said at a press conference here.
He said that the DTC has gone through entire legislative process except passage in Parliament. “I think we have done our homework and Parliament will pass it,” he added.
The monsoon session of Parliament will be held from August 5-30.
The DTC aims to rationalise the tax rates to bring more people and companies under the tax net.
Among other things, the Standing Committee had suggested raising the income-tax exemption limit to Rs 3 lakh against Rs 2 lakh proposed in the DTC Bill, 2010.
On the proposed Goods and Services Tax (GST), the Minister said “one or two state governments” are opposing it.
The Empowered Committee of State Finance Ministers, he said, is working hard on the GST and by-and-large all of them are very supportive.
“The Constitution Amendment Bill is being drafted. It is being placed before the Council of Ministers (on July 22).
Then the GST Bill is to be drafted. It will be placed before them,” he said, adding that the two would be placed in Parliament after they are ready.
The GST Bill, introduced in Parliament in 2010, is being vetted by the Standing Committee on Finance. After the committee submits its report, the states and the Centre would together finalise the draft and bring it back to Parliament.
The proposed GST will bring in a common tax regime for goods and services by subsuming most indirect taxes, and is expected to help increase revenue mop-ups.
The GST roll out has missed several deadlines on account of differences over contentious issue of Central Sales Tax, compensation and design of the GST structure between the states and the Centre.