Site Shortcuts:
Select About Us Member Benefits Register Contact Experts Column eStore

Get free Assistance.

Dealers Register here.

The Income-tax Act, 1961, has been subjected to numerous amendments since its passage fifty years ago. It has been considerably revised, not less than thirty-four times, by Amendment Acts besides the amendments carried out through the annual Finance Acts. These amendments were necessitated by policy changes due to the changing economic environment, increasing sophistication of commerce, increase in international transactions as a result of globalisation, development of information technology, attempts to minimise tax avoidance and in order to clarify the statute in relation to judicial decisions. As a result of all these amendments, the basic structure of the Income-tax Act has been over burdened and its language has become complex. Tax administrators, accountants and tax payers have raised concerns about the complex structure of the Income-tax Act. In particular, the numerous amendments have rendered the Act difficult to decipher by the average tax payer. The Wealth-tax Act, 1957, has also witnessed amendments.

The Government, therefore, decided to revise, consolidate and simplify the language and structure of the direct tax laws. A draft Direct Taxes Code along with a Discussion Paper was released in August, 2009 for public comments. It proposed to replace the Income-tax Act, 1961 and the Wealth-tax Act, 1957, by a single Act, namely the Direct Taxes Code. Public and stakeholder feedback on the proposals outlined in these documents was analysed and suggestions for amendments received from members of the public, business associations and other bodies were taken into account. Thereafter, a Revised Discussion Paper addressing the major issues was released in June, 2010. The present Bill is the outcome of this process.

The Notes on Clauses explain in detail the various provisions contained in the Bill.

New Delhi ; Pranab Mukherjee.

————

President’s recommendation under articles 117(1)
and 274(1) of the Constitution of India

[Copy of letter No. F. 152/10/2010-TPL, dated the 27th August, 2010 from Shri Pranab Mukherjee, Minister of Finance to the Secretary General, Lok Sabha].

The President has, in pursuance of clause (1) of article 117, read with clause (1) of article 274 of the Constitution, recommended to Lok Sabha the introduction of the Direct Taxes Code, 2010.