The Government is now proposing a new direct tax code which will be effective only from the month of July. There will be new structures and the move is to re-define the previous tax codes to bring about streamlining of the various taxes.
What is exactly the new direct tax code?
The government is drafting a new tax code under which there will be numerous changes included. It will replace the old income tax act of the year 1961 and rewrite the new tax laws in line with the economic needs of the country. It is also in view of the country that the world follows the best economic global trade practices.
One of the ways of a sure-shot defeat is that to make the economy more tax compliant and generate enough revenue.
What is the overall aim of the new tax revenue?
It will the system more streamlined and unbiased for the different types of tax payers, to make their business more competitive and phase out the remaining tax exemptions.
It wants to stream line the various tax compliance’s to ensure it a fair process.
How will it work for the common man?
There will be a progressive tax structure and it will be very much useful for the individuals also. It will also help firmly establish the key points such as tax exemptions and scope of taxation.
The Government is also in a bid to woo the investors and simultaneously boost the job creation which will be of immense use to the economy.
It will also be a huge opportunity lower the tax rate, as gradually the revenue collection increases.
The new tax code will re-establish a progressive tax structure which will make the tax slabs from 5% to 20 % of the tax slabs.
New and emerging business models will keep on being taken up by the other countries and create new and emerging pathways for the emerging economies.
Are there any concerns to be taken care of-?
With any new implementation there are obvious some concerns to be taken care of. It will be overall very difficult for the business to cope with the overall business changes.