Finance Minister Pranab Mukherjee Friday said a new direct tax regime with rationalised rates and simplified procedures will take effect 2011, even as the government was open to suggestions from all stakehopders to fine tune the proposals.

"We want to present all stakeholders with a tax regime that is simple and broad based, leading to lowering of tax rates, much better tax compliance and reduced litigation," Mukherjee told a seminar on the new Direct Tax Code here.