Income Tax Act, 1961 to be replaced by Direct Tax Code, 2025.
On August 21st, 2024, "On the occasion of the 165th year of the Income Tax.", Finance Minister Nirmala Sitharaman announced that the much-awaited Direct Tax Code (DTC) would soon be introduced within 6 months.
This significant development represents a transformative stride in India's taxation system, aiming to streamline, modernize, and harmonize it with international standards.
The four major objectives of this code are :
- Simplified taxes
- Improved taxpayer services
- Provide tax certainty
- Reduce litigation
"The DTC differs from the Income Tax Act of 1961 in the following ways:"