The New Direct Tax Code: Overview
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The New Tax Code | The New Direct Tax Code which was said to be introduced from the financial year, 2012-13 replacing the five decade old Income tax Act,1961 has the objective to make the Indian tax structure straightforward. The Income Tax Act 1961 has become very complex and virtually unintelligible to the common man by virtue of a complicated structure, numerous amendments, frequent policy changes and a multitude of judgments that gave varying interpretations to already undecipherable provisions. This complexity has not only increased the cost of compliance for the average tax payer, but also made it costly for the administration to collect tax. For the replacement of Income Tax 1961, the new Direct Tax Code which is completely new gives moderate relief to tax payers, reduce unnecessary exemptions and improve compliance for improving collections. The tax payers themselves can compute and file Income Tax Returns without the help of experts. This paper highlights the overview of the Direct Taxes Code in a nutshell. | | Girish Kalla:IVth Year | 2/12/2013 | |
Table of Contents INTRODUCTION 2 REASON FOR THE NEW TAX CODE 3 HIGHLIGHTS OF DTC 4 IMPACT OF THE DTC 5 Impact on Investments Enjoying Tax Exemptions (Under Section 80C): 5 Impact on Insurance: 7 Impact on Equity Investment: 8 Impact on Investment in House Property: 9 DIRECT TAXES CODE-A PIPE DREAM 10 Relevance of MAT: 10 Wooing Foreign Investment 10 Assessing the Impact: 11 WEALTH TAX BENEFITS 12 A MIXED BAG 12 THE SALIENT FEATURES OF THE CODE IN BRIEF 13 RECOMMENDATION 15 CONCLUSIONS 15
INTRODUCTION
The Income Tax Act was passed in 1961 and has been amended every year through the Finance Acts. A lot of things have changed since then. No doubt, many things have been implemented by modifying the IT Act from time to time. Thus, the IT Act today is very difficult to interpret, and has resulted in many disputes and court cases. Of late, Income Tax
The New Tax Code | The New Direct Tax Code which was said to be introduced from the financial year, 2012-13 replacing the five decade old Income tax Act,1961 has the objective to make the Indian tax structure straightforward. The Income Tax Act 1961 has become very complex and virtually unintelligible to the common man by virtue of a complicated structure, numerous amendments, frequent policy changes and a multitude of judgments that gave varying interpretations to already undecipherable provisions. This complexity has not only increased the cost of compliance for the average tax payer, but also made it costly for the administration to collect tax. For the replacement of Income Tax 1961, the new Direct Tax Code which is completely new gives moderate relief to tax payers, reduce unnecessary exemptions and improve compliance for improving collections. The tax payers themselves can compute and file Income Tax Returns without the help of experts. This paper highlights the overview of the Direct Taxes Code in a nutshell. | | Girish Kalla:IVth Year | 2/12/2013 | |
Table of Contents INTRODUCTION 2 REASON FOR THE NEW TAX CODE 3 HIGHLIGHTS OF DTC 4 IMPACT OF THE DTC 5 Impact on Investments Enjoying Tax Exemptions (Under Section 80C): 5 Impact on Insurance: 7 Impact on Equity Investment: 8 Impact on Investment in House Property: 9 DIRECT TAXES CODE-A PIPE DREAM 10 Relevance of MAT: 10 Wooing Foreign Investment 10 Assessing the Impact: 11 WEALTH TAX BENEFITS 12 A MIXED BAG 12 THE SALIENT FEATURES OF THE CODE IN BRIEF 13 RECOMMENDATION 15 CONCLUSIONS 15
INTRODUCTION
The Income Tax Act was passed in 1961 and has been amended every year through the Finance Acts. A lot of things have changed since then. No doubt, many things have been implemented by modifying the IT Act from time to time. Thus, the IT Act today is very difficult to interpret, and has resulted in many disputes and court cases. Of late, Income Tax