India: Government releases a draft of the new Direct Tax Code
The Government of India has released the Draft version of its new Direct Tax Code.
This new Code is likely to be implemented from April 2011, and will replace the existing Income Tax (IT) regulations as per the IT Act of 1961. The key provisions of the Draft Code which could impact clients include removal of the Securities Transaction Tax (STT), imposition of capital gains tax on long term capital gains, pass through tax status for certain domestic Financial Intermediaries and introduction of General Anti Avoidance Rules.
The Finance Minister has invited comments from the public on this draft report after which the guidelines will be finalized. Feedback may be provided at the following link (section “Comment on Direct Taxes Code”)
http://finmin.nic.in/DTCode/query.asp or by e-mail to directtaxescode-rev@nic.in.
The full text of the new Draft Code is available at the link http://finmin.nic.in/DTCode/index.html.
Source: Ministry of Finance, India, publication of the Draft Direct Tax Code. Please click on the following link to access full details: http://finmin.nic.in/DTCode/index.html
