Direct Taxes Code consultation: committee constituted to collect, consolidate and forward structured suggestions for board review.
A Core Committee was constituted to solicit and consolidate suggestions on the draft Direct Taxes Code, invite inputs from officers and the public through prescribed channels, prepare a draft based on suggestions and studies, and place consolidated recommendations before the full Board for approval and onward submission to the Finance Minister; the Committee's membership is allocated by subject area and a standard submission format and contact method are prescribed.

Export incentive expansion and simplification increases market and product coverage while easing procedural barriers.
Foreign Trade Policy 2009-2014 broadens and raises export incentives under Focus Market, Focus Product and Market Linked Focus Product Schemes, adds new products and markets, introduces a common simplified application for major Chapter 3 schemes, expands EPCG benefits including a Zero Duty EPCG scheme for specified sectors, grants additional duty credit scrips to Status Holders with conditional transferability, relaxes EPCG obligations for spares, and implements procedural simplifications, fee reductions, EDI integration with customs, and the creation of a Directorate of Trade Remedy Measures.

Foreign trade policy promotes export growth through fiscal incentives, market diversification and institutional reforms to boost competitiveness.
The 2009 Foreign Trade Policy establishes a two year export promotion programme combining fiscal incentives, institutional reforms and market diversification to reverse export decline. Key operative measures include continuation and extension of incentive schemes (DEPB, tax concessions, interest subvention, enhanced export credit insurance), a 15% minimum value addition norm for imported inputs under advance authorisations, technology upgradation support for recognised status holders via duty credit scrips and zero duty EPCG capital goods, focused support for SEZs and Towns of Export Excellence, establishment of a Directorate of Trade Remedy Measures, and implementation of e trade and single window procedures to reduce transaction costs.

Export Promotion Policy seeks to restore export growth through fiscal incentives, market diversification, and infrastructure reforms.
The policy aims to reverse export decline and achieve sustained high growth through a mix of fiscal incentives, institutional reforms, market diversification, infrastructure improvements and full refund of indirect taxes on exports. It continues and enhances support schemes (including tax and duty concessions, export-credit and insurance measures), mandates value addition requirements for certain imports, recognises leading exporters as status holders eligible for Duty Credit Scrips to import capital goods duty free, and introduces targeted market-development and trade-remedy institutions to assist exporters and MSMEs.

Residence-based taxation: residents taxed on worldwide income while non-residents taxed on India-sourced income under the Code.
The Paper proposes a consolidated Direct Taxes Code applying residence based taxation to residents (worldwide income) and source taxation to non residents, reorganising computation into ordinary and special sources, adopting an income expenses model for business with clarified expenditure categories and capital allowances, rationalising tax incentives (notably EET treatment for permitted savings), introducing a GAAR to counter impermissible avoidance, modernising tax administration via centralized risk based scrutiny and information systems, and reforming procedures for filing, assessment, penalties and corporate taxation including dividend distribution tax and an asset based Minimum Alternate Tax.

Direct Tax Code transition increases interpretational complexity and compliance burden for tax professionals, requiring extended case tracking.
Introduction of the Direct Tax Code will alter the income-tax legal framework and create novel interpretational issues requiring judicial clarification; tax professionals must manage concurrent regimes and monitor evolving case law while advising clients and reconciling legacy matters pending under the existing statute.

Tax rate differential increases individual burden, with MAT on gross assets and dividend tax hindering conversions.
Direct tax proposals create a tax rate differential by proposing a lower corporate tax rate than the maximum marginal rate for individuals while keeping unincorporated entity rates unchanged; they shift MAT to operate on gross assets instead of book profit and retain Dividend Distribution Tax, together potentially discouraging conversion of non corporate entities into corporate form and increasing tax burden for asset intensive or early stage companies.

Extension of time for filing ITR V permits later postal submission for electronically filed returns while retaining postal verification requirement.
For electronic returns filed without a digital signature, the verified ITR V may now be submitted by the later of the specified extended calendar deadline or within sixty days of uploading the electronic return data; the ITR V must be sent by ordinary post to the designated Post Bag address in Bengaluru.

Tax law amendments update definitions, income exclusions, valuation rules and compliance obligations under direct tax statutes.
Amendments under the Finance (No. 2) Act, 2009 revise numerous provisions of the Income-tax Act, 1961 and selected Wealth Tax Act provisions, updating definitions, exclusions from total income, special regimes for export and SEZ units, capital gains valuation (including slump sale and specified valuation rules), deductions, depreciation and presumptive taxation, and reforming compliance and enforcement mechanisms-accounting and audit requirements, assessment and reassessment procedures, search and seizure powers, PAN/TAN and withholding obligations, penalties, provisional attachments, appellate pathways and relevant schedules.

Tax compliance changes introduce PAN requirement, DIN allotment, TDS processing and new provisions for specified businesses and trusts.
Insertion of multiple provisions by the Finance (No. 2) Act, 2009 revises tax compliance and substantive rules: it mandates furnishing of Permanent Account Number, provides for Document Identification Number allotment, requires processing of TDS statements, enables reference to a Dispute Resolution Panel, empowers issuance of safe harbour rules, and creates specified-business loss setoff and deduction rules alongside special provisions for electoral trusts and LLP partner liability; it also inserts a Customs refund provision and restricts application of Chapter VII in certain securities and commodities transaction taxes.

Direct Taxes Code released for public consultation, proposing replacement of existing income and wealth tax statutes.
The draft Direct Taxes Code and a Discussion Paper will be published online with a web interface to receive public comments; the Code is intended to replace the Income-tax Act, 1961 and the Wealth-tax Act, 1957, and the Government will consider submissions received before finalising the Bill for introduction in Parliament.

Direct tax collections show modest growth while higher tax refunds dampen net revenue gains in early fiscal months.
Direct tax receipts showed modest year-on-year growth in the first four months of the fiscal, with Corporate Tax rising more slowly than Personal Income Tax and Securities Transaction Tax recovering; a marked increase in tax refund outgo materially constrained net collection growth and reduced net cash inflows despite positive monthly net receipts for July.