QUESTION: I am a retired person and filing tax return every year. I need a clarification regarding Direct Taxes Code (DTC), 2010.
Assuming DTC Bill, which is tabled in Parliament becomes law with effect from April 1, 2012, as provided in the Bill, could you advise whether my income for the current year, April 2011 to March 2012 [assessment year 2012-13] would be assessed under the DTC provisions? Or whether DTC provisions would be applied only with effect from assessment year 2013-14?
ANSWER: If the DTC becomes law effective from April 1, 2012, as provided in the Bill, it will start applying for the income of the financial year being the period of 12 months from the first day of relevant year, that is, financial year 2012-13 vide the definition of financial year in clause (e) of sub-section (102) of Sec. 314 of the Code Bill.
The concept of assessment year is not continued in the Code.
