March 16, 2020

DTC (Direct Tax code)

What is DTC? Full name of DTC is Direct Tax Code. DTC is replacement of Income Tax Act 1961.                                                                                              
Why DTC is replaced by Income Tax act 1961? Answer Due to loop holes, such as Income tax department will have on jurisdiction over the fraud happened outside even on Indian country purchases and sales of shares.  So By this Replacement, Government have power to minimize the menace of tax avoidance and Authority for advance ruling (AAR) is a body by government can act independently over these issues and grant permission for MNCs( Multinational Corporations) that 'transfer of shares' ( bunching of shares is legitimate or not).

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