In step with the needs of the Indian economy which is now the third largest in Asia, and the government on Monday submitted a bill to replace the income and wealth, old tax laws, the main reform that would expand the network and provide tax incentives for investors and increase revenue.
Were evacuated bill direct tax law, introduced by Pranab Mukherjee and Finance Minister in the Lok Sabha, by the Council of Ministers on August 26. It will go now to the parliamentary committee for scrutiny.
It is expected that legislation to be taken up for discussion when Parliament reconvenes for the winter session in November.
Direct taxes is the main provider of resources for the government and has grown at an average of 24 percent annually in the past five years, tripling from Rs.132, 771 billion rupees in 2004-05 to about Rs.378, 000 billion rupees in the previous fiscal year.
Also increased the share of such taxes from 4.1 percent to 6.1 percent of gross domestic product, which was possible thanks to the rationalization of tax structure, improving governance, which led to better tax compliance.
Recognizing the need for India has to update its laws, direct taxes, income tax, mainly in the work that is now almost 50 years, and the government through a bill that seeks to simply procedural laws and building an investor friendly atmosphere. It aims to phase out tax exemptions and multiple discounts.
'To improve compliance with tax laws more needs to be simple, stable and strong. And should remain moderate tax rates, 'Mukherjee said in an earlier time.
It is also expected that the new law to simplify the tax rates and corporate governance for foreign investors, who India is the highest point.
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