Talks on draft direct taxes code over: FinMin

The government is through with the consultation process on the proposed direct taxes code and the contours of the new tax structure could be finalised soon, a top government official said on Wednesday.

"The process of consultation is almost complete," finance secretary Ashok Chawala told reporters on the sidelines of a Federation of Indian Chambers of Commerce and Industry seminar in New Delhi.

Chawla added that the architecture of the proposed tax code would be finalised by the revenue department and after policymakers give nod to it, the bill on Direct Taxes Code would be drafted by the law ministry.

"Architecture will be finalised by the Revenue Department, and after the minister and other policy makers have given their green signal, the law ministry would draft the whole thing in the form of framework which is the direct tax code," Chawla said.

The Direct Taxes Code is likely to be implemented from 2011-12. Sources said the bill in this respect may be tabled in Parliament in the Budget session.

The government has come out with the draft Direct Taxes Code that is aimed at making tax structure in the country simpler and lower the tax burden by reducing exemptions. It will replace the Income Tax Act 1961.

The government has placed draft of the tax code in public domain for comments. There have been a host of issues in the draft code that have been raised by the industry and individuals at various fora.