The Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on February 1st, 2025 at 11:00 AM before the Parliament. In the Budget , the Finance Minister proposed to introduce a new Income Tax bill next week .It is anticipated that the Direct Tax Code will serve as the model for the forthcoming income tax bill. The new tax bill is intended to simplify the Income Tax Act for people to read and comprehend, as well as to make tax compliance easier.
The goal of the Direct Tax Code is to simplify income tax rules and reduce legal problems and disputes for businesses, the government, and people. In her remarks during the previous budget, FM Sitharaman made reference to this new tax law when she said that the goal was to simplify the income tax rules and cut the Income Tax Act, 1961’s page count by as much as 60%.
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By removing obsolete laws, streamlining the language, and cutting down on sections and chapters, the Direct Tax Code (DTC) will simplify the current Income Tax Act. Making the law more understandable and accessible for professionals and taxpayers alike is the aim. Presently, there are 298 provisions in 23 chapters of the Income Tax Act, 1961, which cover a variety of tax topics, including securities transaction tax, corporate tax, and personal income tax. It is expected that the updated DTC would be clearer and more succinct, which will make it simpler for people to read and comprehend the tax laws.
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