The New Code Short And Light By Removing - 2 Sep 08

Paying tax could soon be free from the present cumbersome procedure as the government is giving final touches to the new Income Tax Code, which will be put in public domain. The new Income Tax Code will make it easier for taxpayers and professionals to understand the tax rules. The codes are almost ready and they will be out soon, a Finance Ministry official said. The new direct tax code will replace nearly five-decade- old Income Tax Act 1961 and would subsume other legislations, including Wealth Tax Act.

After a number of amendments, the Income Tax Act has become voluminous and complicated for the common man as well as professionals.The Finance Ministry has been drafting a new tax code in association with experts, the official said and added that the whole emphasis is to make the new code short and light by removing redundant provisions and complex tax jargon. The new code would first be put in public domain for comments from stakeholders and then it would be placed before Parliament for approval.Earlier, Finance Minister P Chidambaram while replying to a discussion on Finance Bill 2008 in Lok Sabha said that after the tax codes come into existence the country would move towards the system of taxation where "exemptions are few, each exemption is reviewed periodically and each exemption comes to an end after a reasonable period of time".