Finance ministry to prepare paper on EET

The finance ministry is planning to prepare a discussion paper on the EET (exemption at the stages of deposit and accumulation and taxation at withdrawl) method. The discussion paper is likely to be finalised after the budget session of the Parliament.

"The revenue department will hold consultations with the committee and then prepare a consultation paper for wider discussions before taking a view," a senior revenue department official said.

The official said the general view in the department was that the implementation of the recommendations of the Kannan committee on EET should be gradual and in a phased manner.

Officials said the review exercise of the Income tax Act was also expected to be completed by April 31, 2006. The sub-groups, which had been formed to review all the 298 Sections of the Act, was working on simplifying the language of the Act.

"The decision to merge some sections or drop some other sections under the Act would be taken at the level of the Finance Minister," officials said adding that the amended Act was likely to be tabled in the monsoon session of the Parliament.