Existing Direct Tax System and Proposed Direct Tax Code in India Essay

measure is defined as a compulsory payment made to the government by the individuals firms and companies without any prevision of a direct return. In general there are two types of revenue enhancement agreement normal in our country. One is direct task and other is indirect impose. Here we will restrict our intervention to direct tax only. Direct taxes are those the burden of which cannot be shifted, that is incidence and impact is on the equivalent person. In India the tax law is governed by the finance act. The amendments are brought through budget every twelvemonth which is issued on the last date of February. There flip been miscellaneous arguments in regard to the complexity of the tax laws. The new tax system which is proposed basically focuses on the principle of equality and simplicity.Instead of having different explanations of tax laws under different umbrellas all the laws will be brought under one head. The new tax system will be highly focused on the matter th at the richer should pay heavier tax and vice-versa. For this regard the exemption limit and tax slabs will be expanded higher. Moreover under new taxation laws various taxes like securities transaction tax will also be abolished thus making the code an efficacious one. With the new tax code being implemented in India one can expect to have free trade across the length and breadth of the country and peace in the bags of investors. 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.