Rs.55,000 crore revenue in tax net with direct tax code

Kolkata, Sep 27, 2010 (Calcutta Tube) The government plans to bring Rs.55,000 crore revenue within the tax net through withdrawal of profit-linked tax exemptions after the Direct Tax Code (DTC) is introduced in 2012-2013, Revenue Secretary Sunil Mitra said here Saturday.

At the same time, it would lose Rs.53,172 crore worth of taxes for moderating rates after introduction of the code.

‘In DTC we will withdraw all profit-linked tax exemptions but we will continue with all investment-linked tax exemptions,’ Mitra said on the sidelines of a seminar organised by industry chamber Confederation of Indian Industry (CII).

The government loses Rs.80,000 crore every year on account of investment-linked and profit-linked tax exemptions.

Mitra said government’s indirect tax collection in the first five months of 2010-11 has gone up by 45 percent and the direct tax collection has gone up by 20 percent.

The partial withdrawal of stimulus has given boost to indirect tax collection, he added.

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