On a cool Sunday evening, a Child walks on a beach with gay abandon. She starts to build a castle in the sand. She collects sand and arranges it into a big heap. She tries to mould it as per her imagination. After sometime, she completes the sand castle and she goes around the castle merrily – laughing,cheering and shouting.This attracts some other people loitering on the beach. They come and start inspecting the castle. Some applaud it and some suggest little changes to the castle to make it more beautiful. First the child is confused about making the changes. At last, she obliges the onlookers’ advice and makes alterations with some tinkering to the minarets here and to the windows there.Now, more onlookers start giving advice on making it look more wonderful. The child listens patiently to them and makes more alterations with her tender hands.Then a disaster strikes. The castle suddenly collapses due to too many alterations. Disappointed by it, the child walks home with a heavy heart.
Some of you may be wondering what this is all about! The above story sums upthe predicament of the Government of India in bringing about severalamendments to the Direct Taxes Code (DTC). It may be recalled that theGovernment had brought out a Revised Discussion Paper (RDP) on 15
of June2010 making certain changes to the draft DTC Bill which was released in August2009. The Government has apparently messed up the whole issue of bringing atransparent DTC, which could have been understandable easily by ordinarypersons; providing stability, equality and clarity; and without any distortions. Thisarticle provides a critical analysis of important issues in the DTC proposals.
Rama Krishna Vadlamudi, BOMBAY June 21, 2010
Please read the author’s disclaimer given at the end of this article.