The direct taxes code bill was tabled in the parliament on 30 august 2010 by the then finance minister to replace the income tax act, 1961 and wealth tax act the bill, however, could not go through and eventually lapsed after revocation of the wealth tax act in 2015. The law is proposed to be amended to give extra-territorial jurisdiction in respect of offences committed outside india, and proposes to include non-resident offenders india tax khaitan & co 2 feb 2018.
Direct tax code,2009 is a draft proposal to make existing tax structure easy and simple so that tax payers themselves can compute and file income tax return dtc is designed to provide stability in the tax regime as it is based on well accepted principles of taxation and best. Taxation in india this article has multiple issues direct taxes code (dtc), was proposed to replace the two acts [when] however, essential inputs for policy and planning of direct taxes in india and is also responsible for administration of the direct tax laws through income tax department the cbdt is a statutory authority. Thus, the new tax system is an attempt to create a system with minimum loopholes of the existing system, thus contributing to the national benefit we will write a custom essay sample on existing direct tax system and proposed direct tax code in india specifically for you.
The direct tax code explained with examples: the dtc is explained in this section by delving into its key features key examples of dtc are income tax, corporate tax, wealth tax and capital gain tax. While income tax act and direct tax code have lot of similarities but we are more concerned about the difference let me take you through the journey i will tell you about the direct tax code i will also tell you the prominent differences between the it act & dtc evolution and objective direct tax code was formulated to replace the five-decade-old income-tax act. 113 existing indirect tax system in india the present taxation structure in india can be broadly classified into direct and indirect taxes 1131 direct tax the direct tax is an income tax those taxes on income from individual or group, and wealth tax. For those who are not familiar with taxation system in india, let me explain in india, taxes are broadly classified into two categories – direct and indirect while the proposed goods and services tax (gst) is expected to broaden the base of indirect taxes, comprehensive administrative and legal reforms are required to curb massive.
Tax system reform in india: achievements and challenges ahead by these, by themselves, are important enough reasons for a detailed analysis of the tax system in india unfortunately, unlike in many developed countries where major tax reasonable time period, led the direct taxes enquiry committee (india, 1971) to. The government of india proposed several changes in the tax system from time to time the new direct tax code (dtc) seeks to bring about a paradigm shift in the direct tax system the objective of the new code is to improve the efficiency and equity of indian tax system.
India still needs the direct tax code of the provisions of the proposed code have already been integrated into existing tax law effect helps large business groups who can game the system. In the proposed direct tax code dividend distribution tax will decreased to 15% 13 leave travel allowance (lta) is basically defined as the cost of travel granted to employees to travel anywhere in india, while on leave from work. Direct tax code and retail industry ( ms shishma kushwaha ( ( dr mk gupta abstract: the new direct tax code is going to replace the existing income tax act of 1961 in india it is expected to be passes in the monsoon session of 2010 and is expected to be enforced from 1st april 2011.
Tax: all about taxation in india check types of taxes with examples tax news & notifications helpful tips tips to save tax on your financial year the minister of finance concluded that this decision would lead to the withdrawal of 41% of the existing cases which are related to direct taxes and 18% of the cases which are related to.
In a move to establish a more efficient, effective and equitable direct tax system, the direct taxes code or dtc has been drafted to replace the existing indian income tax act of 1961 it aims to consolidate and amend all laws relating to the direct taxes in order to facilitate voluntary compliance and increase the tax-gdp ratio. From 2018-19, the 25% tax rate is available to all firms with sales less than rs250 crore can individuals expect any relief the new direct tax code will try to make personal income tax rates more ‘progressive’ by giving relief to people in the 5% and 20% slabs.