The time offered for putting up public comments on the revised discussion paper on the direct tax code (DTC) is too inadequate to evoke proper response from people, say experts. The new draft code, which was released on June 15, has been put up for public comments till end June.

“They have given a time period of just 15 days which is too inadequate to evoke response or for any sort of representations from people,” said Mr Amitav Kothari, FCA, Managing Partner, Kothari and Company.

The earlier discussion paper on the Direct Tax Code Bill was released in August 2009 for public feedback and inputs on the proposals. However, it drew criticisms from certain quarters for its proposals such as imposing a minimum alternate tax on gross assets and taxing long-term savings at the time of withdrawal.

The new simplified tax code, which is likely to be introduced in Parliament in the forthcoming monsoon session, is expected to raise tax slabs and lift the ceiling for tax-free savings. The new DTC will replace the decades old Income Tax Act, 1961.

Though the major issues have been addressed in the revised discussion paper, some of the minor issues have been left too vague, Mr Kothari said.