The revised proposal of Direct Taxes Code or DTC is likely to be tabled in the Cabinet only after a go-ahead from the Prime Ministers Office (PMO). An official told The Indian Express that though the amendments in the proposed DTC have been almost finalised,Prime Minister Manmohan Singh has to decide the timing of the introduction of the code. If approved,the bill is likely to be tabled in Parliament in the winter session. According to the Cabinet note on DTC circulated earlier,the finance ministry has proposed taxing the super rich,earning taxable income above Rs 10 crore,at the rate of 35 per cent. However,DTC could not be considered by the Cabinet due to intervention by the PMO,which argued that such a tax would adversely impact the investment conditions. Further,in a bid to assuage apprehensions of foreign investors,a senior finance ministry official urged taxpayers to keep their faith in the system and said that the concept of pro-revenue approach is undergoing a change. Sumit Bose,revenue secretary,said the government has taken a slew of measures,including tax administration reforms commission to bring in changes in the tax regime while also moving towards global best practices.
