Direct Taxes Code simplifying tax structure in 45 days

The government today promised to come out within 45 days with a framework for the Direct Taxes Code that will simplify tax structure.

"I propose to pursue the structural changes in direct taxes by releasing a new Direct Taxes Code withinn the next 45 days," Finance Minister Pranab Mukherjee said while unvieling the Budget for 2009-10.

The Direct Taxes Code Bill, which will eventually replace the Income Tax Act, 1961 and other tax laws, will be introduced in the Lok Sabha during the winter session.

Noting that tax reform is a process and not an event, the Minister said the government would release a discussion paper on Direct Taxes Code for public debate.

"Based on the inputs recieved, the government will fianalise the Direct Taxes Code Bill," Mukherjee said.

Meanwhile, on the structural changes in indirect taxes, the Minister promised to speed up the process for implementing Goods and Services Tax (GST) by April 1, 2010.

The GST, a new indirect tax regime, would do away with most of the indirect taxes and would have a dual structure. The two componets would be Central GST and the States GST.