The government will come up with a modified Direct Taxes Code (DTC) Bill after incorporating the suggestions of the Standing Committee on Finance, which among things had suggested raising annual income tax exemption limit to Rs 3 lakh.
"Will come out with modified DTC (Bill) in response to Standing Committee suggestions," said Advisor to the Finance Minister Parthasarathi Shome at a FICCI event here.
He said the Finance Ministry is looking at the Bill and working on tax structures as suggested by the Parliamentary committee.
The Parliamentary panel headed by senior BJP leader Yashwant Sinha in its report (March 2012) had suggested raising the annual income exemption tax limit to Rs 3 lakh as against Rs 2 lakh proposed in the original DTC Bill. Current tax exemption limit is Rs 1.8 lakh.
It has also suggested that subsequent tax slabs be adjusted accordingly to provide relief to people reeling under the impact of inflation. The DTC will eventually replace the over five decades old Income Tax Act.
"We are trying to see what could be the best in terms of transparency so that issues that are hurting industry could be covered adequately," Shome said.
He further said the Finance Ministry is also addressing the issue of expenditure control and that remains a major challenge.
"We are looking into expenditure efficiency. We should do more in terms of efficiency. Issues on expenditure side are being addressed. Expenditure control is a major challenge and is being addressed by the Finance Minister," he said.