Big Challenge before tax professionals

When an assessee earns income he has to pay tax and file the return for the previous year (financial year) on or before the expiry of certain date of the assessment year (following the financial year) i.e. 31^st July / 31^st October. After filing the return, assessee has to wait for assessment order, in case the return has been selected for scrutiny. He has to wait for more time i.e. upto 6 years in case notice is issued for income escaping assessment. He has to wait and fight the case before the appellate authority or judicial authorities in case he is not satisfied with the assessment order or appellate order.

Now, after introduction of the Direct Tax Code (DTC) it will be a big challenge before the tax professionals dealing the Income Tax to remember the provisions of Income Tax Act, 1961 and to keep a close watch on judicial pronouncements at least 10-15 or more  years where cases are pending or would be pending under the IT Act concurrently.

Since the DTC will be a new code having a different concept and scope (for an example existing IT Act, 1961 plays a regulatory role also, the proposed DTC would play much less regulatory role), it is bound that number of interpretational issues will arise. These interpretational issues will be decided by the courts in due course.

Therefore, it is bound that though it appears that proposed DTC may be simpler for the income tax payer, it would create more work, more difficulties and more challenges for tax professionals and consultants.