New Delhi, Feb 2 (Inditop.com) The Bharatiya Janata Party (BJP) has slammed the provisions of the proposed Direct Tax Code as being inequitable towards small asessees and strongly objected to the move to deny tax exemptions to religious institution.
In a memorandum to Finance Minister Pranab Mukherjee Tuesday, the principal opposition party said that the proposed tax code also seeks to establish a draconian regime by conferring arbitrary and discretionary powers on tax officials.
“We strongly urge the government to suitably address these concerns before proceeding further in this matter,” the party said in the 12-page memorandum, based on the draft that has been circulated for consultations.
“It is widely felt the Direct Tax Code has failed to come up to the aspirations of modern India, which believes in change and progress without diluting its commitment to core values, be it social, political or cultural.”
The new code seeks to replace the 50-year-old Income Tax Act, that has seen as many as 4,500 amendments since it was enacted in 1961, to reflect the needs of an emerging economy.
“Another very disturbing and disquieting feature in the code is the rather thinly veiled attempt to destroy the charitable and religious institutions in our country,” said the BJP memorandum, adding: “We strongly oppose this move.”
The demands made by the party include:
-Hike in minimum exemption level to at least Rs.3,00,000 per annum
-Higher exemption limit of Rs.3,50,000 for women and Rs.4,00,000 for senior citizens
-Highest tax rate for individuals be lowered to 25 percent from 30 percent
-Status quo on present norms for government employees on housing, conveyance
-No withdrawal of incentives available for owning or investing in a house
-Rebates on maturity must continue on savings in provident fund or insurance policies
-Distinction between long term and short term capital gain should continue
-Exemption to religious trusts should not be withdrawn under any circumstance
-Irrational treatment of non-resident Indians must be withdrawn
-Treaties with tax havens must be revisited to provide proper safeguards against abuse
-Exemptions to news agencies must continue
