Understanding Direct Tax Code 2025: Simplifying India’s Tax Laws.

Understanding the Direct Tax Code 2025: Key Insights and Major Changes The introduction of the Direct Tax Code marks a transformative moment in India’s tax landscape. Set to replace the Income Tax Act of 1961, the Direct Tax Code 2025 simplifies complex tax laws, enhances transparency, and modernizes the taxation process. Scheduled to take effect in April 2025, it aims to usher in a new era of tax compliance and clarity for individuals and businesses alike. Let’s explore why the Direct Tax Code 2025 is crucial, its major changes, and its impact on taxpayers and professionals. Why Was the Direct Tax Code Introduced? The need for a Direct Tax Code arose due to the growing complexity of the Income Tax Act, which contained hundreds of sections, sub-sections, and exemptions. Introduced by Finance Minister Nirmala Sitharaman, the Direct Tax Code simplifies these intricate provisions, reduces litigation, and fosters better compliance. India’s taxpayer base has been historically low, with ...