NEW DELHI: Union Finance Minister, Mr Pranab Mukherjee, has displayed hope that the Direct Taxes Code (DTC), which aims to modernise tax laws in India, will come into affect from April 1, 2012.
Mr Pranab Mukherjee, said, “The proposed Direct Taxes Code brings together the policy initiatives on direct taxes. It is slated to come into force from the next financial year. We are moving towards an economy-wide, generalised value-added tax system of Goods and Service Taxes (GST) at all levels in the country.” This statement has come while he was addressing an international conference on ‘Tax and Equality’.
With the aim to modernise the tax system, Centre has recommended to replace the Income Tax Act, 1961, with a new legislation.
While offering details of the tax reforms being pursued by the Government, Mr Pranab Mukherjee also looked at greater international cooperation with the aim to deal with the tax evasion problem and black money.
The annual illicit outflows from emerging economies and developing countries is in the range of $725 billion and $810 billion.