Direct Tax Code creates optical illusion among taxpayers: Jaitley

New Delhi, Nov 4 : Criticising the Centre for its proposed Direct Tax Code, Leader of the Opposition in the Rajya Sabha and senior BJP leader Arun Jaitley said the code creates an optical illusion among taxpayers.

Speaking at a seminar organised by the Confederation of All India Traders (CAIT) on Direct Tax Code here, Mr Jaitely said, '' The packaging of the proposed Direct Tax Code has been done in such a way that it creates an optical illusion among tax payers.'' ''Direct Tax Code arbitrarily seeks to put heavy burden on the owners of House Property by way of a notional income at six per cent of the rateable value or the cost of construction where the rateable value has not been fixed,'' he said.

''This presumption of six per cent would be applicable to properties where the Revenue contends that the rental has not been contractually fixed. Presuming the Rateable value at six per cent would cause excessive burden in many cases,'' he added.

''The present position is that any cash loan or deposit in excess of Rs 20,000 is subjected to penalty. The Code now provides that the same would be subject to tax as income. This is prima facie absurd since a gift of Rs 50,000 continues to be exempted from taxation under the present law,'' Mr Jaitely said.

The BJP leader said, ''At present the long term capital gain is taxed at 20 per cent as against a maximum marginal rate of 30 per cent. This distinction between the long term and short term capital gains is sought to be removed.'' ''The Code as drafted seeks to impose TDS even on the people who may not have taxable income during a particular year, he added.''

--UNI

(c) 2009 Published with permission from United News of India.
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