Navigating India’s new Direct Tax Code
Saturday, July 16, 2011
| Posted by: Grant Thornton
Categories:
India,
India Watch Issue 13
| Tags: India,
India Watch,
UK,
South Asia Group,
Grant Thornton India,
South Asia,
legislation,
wealth,
companies,
Direct Tax Code,
Wealth Tax Act 1957,
ITA,
DTC,
Tax Act 1961,
individual,
laws
It is regarded by some commentators as one of the most substantial changes to India’s tax system and will have significant implications for companies operating in and out of India on a cross-border basis. The newly proposed Direct Tax Code (DTC) is to replace the existing Income Tax Act, 1961 (ITA) with effect from April 1, 2012. The DTC is being introduced to integrate all direct tax laws (ITA and Wealth Tax Act, 1957) under a single legislation, to simplify the language, to reduce the scope of litigation and to provide stability in direct tax rates. Below we highlight some of the proposed changes.
