Code chaos

If the Direct Taxes Code Bill is passed in its present form, a firm will end up paying taxes even on loans raised by it to finance capital expenditureNoor Mohammad Delhi

The Direct Taxes Code proposed by the government seems to be a well-intentioned move aimed at removing ambiguities that mar the existing direct tax legislations and give rise to litigations, thereby encouraging tax evasion. However, some of its provisions are not well thought out and raise suspicion that the drafting of the bill was rushed by officials in the department of revenue.