The direct tax collection in the country is expected to grow by at least 50 per cent once the proposed new Direct Tax Code (DTC) comes into effect, according to S.S.N. Moorthy, chairman, Central Board of Direct Taxes (CBDT).
“The new DTC, which is to be tabled in Parliament this monsoon session, is being drafted more towards compliance than collection by making the tax levies moderate,” he said.
Presently, the direct tax collection stands at Rs four lakh crore per annum.
Mr. Moorthy was delivering keynote address at a seminar on Direct Tax Code organised by the Institute of Chartered Accountants of India, Tirupur branch, here on Saturday.
The new tax code, according to him, has become essential to deal with the complexities arisen owing to changes in economic and business environment over the last few decades since the Income Tax Act administered presently was enacted in 1961.
“The Board is now collecting feed back from professionals, trade and commerce associations on the new DTC being drafted before it was tabled to legislate it,” he said.
Mr. Moorthy said that three more changes apart from the new DTC, which include general sales tax, company law and International Financial Regulation Standards (IFRS) accounting norms were contemplated.
Chartered accountants and industry representatives attended.