Union Finance Minister Pranab Mukherjee on Saturday said the Direct Tax Code (DTC) would be made operational by next year.
Speaking at the post-budget interactive session organised by Federation of Indian Chambers of Commerce and Industries (FICCI), Mukherjee said, “To mop up additional resource mobilisation and to give a
credibility to the fiscal consolidation target it was needed to give a signal but apart from that in my budget speech I have explained it in details. That I am aiming to reach DTC, because the standing committee report was available to me only on March 6, therefore I have to operationalise it next year.”
The DTC is said to replace the existing Indian Income Tax Act, 1961. It is expected to remove most of the categories of exempted income like Unit Linked Insurance Plans (ULIPs), Equity Mutual Funds (ELSS), Term deposits, NSC (National Savings certificates), Long term infrastructures bonds, house loan principal repayment, stamp duty and registration fees on purchase of house property will loose tax benefits.