This Article is From Jul 09, 2014

Economic Survey Calls for Implementation of DTC

New Delhi:

The government should widen its tax base to achieve fiscal consolidation, the finance ministry said in the Economic Survey on Wednesday ahead of Finance Minister Arun Jaitley's maiden budget.

The survey also calls for the implementations of Direct Taxes Code (DTC) as a clean modern replacement for existing income tax laws. The ambitious Direct Taxes Code, which proposed overhaul of the six-decade old Income Tax Act, was introduced in the Lok Sabha on August 30, 2010. The DTC draft had recommended that the combined ceiling for tax-saving investments be raised to Rs 1.5 lakh per annum. The current limit is Rs 1 lakh.

The DTC draft had also called for an introduction of a fourth slab of 35 per cent on super-rich with income exceeding Rs 10 crore.

The Economic Survey called for the need to towards a simple tax regime with fewer tax exemptions single rate of goods and services tax (GST).