Indian Direct Tax Code (DTC)

"body">RIGHT USE OF PROFESSIONAL TALENT
Public debate has not fully supported DTC in India.The precious time of professionals are meant to
Should the Indian Government introduce abe used productively to contribute to National
legislation which may invite serious difficulties in itsGDP and Growth. Professionals should have more
implementation? It will be a national disgrace, if thetime to attend clients rather than in understanding
code is enacted and may be withdrawn laterthe routine comprehensive changing laws and then
because of chaotic situation. Will it shake theget involved into legal conflicts. India has
confidence of foreign investors in India?abundance of human resource and if used
Many of them are already baffled with Indianproperly there is a possibility that the world can
bureaucracy and plethora of laws. Can any onesee the return of contemporary version of
imagine; how many precious man hours of"Golden Indian Era"
Chartered Accountants, Professionals and otherSIFI.COM/FINANCE a popular Indian website
related people are used for unproductive work ofreports about DTC as under: Direct Taxes Code:
understanding, debating a legislation with "endA wild goose chase taxing offshore transactions.
result" of: either withdrawal or postponement ofThe single-mindedness with which the Direct
legislation? Taking a public opinion before enactingTaxes Code has been designed to enhance
any law is considered a globally accepted healthyrevenue productivity would have been
exercise but if it is not supportive, thepraiseworthy but for the fact that the Code
consequences of unilateral enactment will beavowedly goes against many time-hallowed and
disastrous. Too many frequent changes in lawbasic concepts on the specious ground that "some
keep the lawmakers and taxpayer confused allassumptions which have held the ground for
the time. Obviously, DTC has many good featuresmany years have been discarded".
too and it may be wise that all disturbingTo give just two examples: first, the Code has
provisions should be taken out from the Code andmore or less ignored the basic concept that there
may be introduced later after examining theis a difference between a revenue receipt and a
implications properly. Tax payers must becapital receipt and secondly, that a later provision
considered as a partner in national growth insteadin the domestic act will override Double Taxation
of a party for tax collection.Avoidance Agreements ("DTAA").