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| Ministry to examine DTC proposals
New Delhi: The Finance Minister, Pranab Mukherjee on Friday promised to examine in detail seven critical proposals of the Direct Taxes Code (DTC) which include taxation of savings schemes and imposition of Minimum Alternate Tax (MAT) on gross assets before finalising the draft.
The other DTC proposals, which would be scrutinised by the ministry, deal with Capital Gains tax on NRIs, double taxation avoidance agreements, taxation of foreign firms and charitable organisations, the Minister said in an interactive session with the representatives of trade and industry.
On the schedule for implementation of the DTC, the Minister said it would be implemented only after "a comprehensive review" of the proposals.
The DTC proposed to bring all savings schemes under an EET (Exempt Exempt Tax) taxation system, which would require people to pay tax at the time of withdrawal of money.
At present, several savings scheme such as PPF are under the EEE (Exempt Exempt Exempt) mode - wherein tax exemption is enjoyed at all stages whether investment, accrual or withdrawal.
As regards MAT, the DTC proposed to impose minimum tax on the gross assets of a company instead of the gross profit. The proposal, however, did not find favour with industry.
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