I-T Dept to Start Awareness Drive on New Tax Provisions 

The govt wants to make the Direct Tax Code as simplified as possible before it is rolled out
THE Income Tax department would be conducting awareness programmes in major cities on the changes in income tax provisions made during the financial budget. Meanwhile, the government is still open for suggestions on the Direct Tax Code and wants to make it as simplified as possible, before rolling it out next year, a top government official said.

“The common man is confused with the amendments made to the tax provisions every year in the financial budget and often depend on auditors to understand the changes. Awareness is the need of the hour.

Starting next year, the Income Tax department would be conducting programmes in this regard post budget on the various changes made to the tax law,” union minister of state for finance S Planaimanickam said at an
event organised by All India Taxpayers Association.

The minister also said that the government is still open to inviting suggestions on changes made to the Direct Tax Codes from all segments and wants to make it as simplified and user friendly as possible, before its roll out from next financial year.

“Direct Tax Code is an open book. It would change
the history of Indian taxation and will make the taxation process more efficient.
World's best practices have been studied in bringing out the code and it should be tested and implemented after all the concerns are addressed. Once the code is standardised and implemented there would not be a need from making changes to tax laws in every budget," Planaimanickam added.

Some of the concerns raised where the tax treatment on charitable trust, which is subject to stringent laws under the code, 5 per cent tax on dividend on equity linked mutual fund and united-linked investment plans.

CA Murali, secretary of All India Tax Payers Association said that the suggestions and concerns raised would be put forward to the finance ministry in the next fifteen days.

Financial Chronicle, New Delhi, 26-10-10.