🚨 Big Changes Ahead in India’s Tax System: The Direct Tax Code (DTC) 🚨 India’s tax framework is set for a historic transformation with the introduction of the Direct Tax Code, anticipated in Budget 2025. The new code aims to replace the Income Tax Act, 1961, modernizing the tax structure to make it simpler, fairer, and more transparent. Key Expectations from the New DTC: 1️⃣ Simplified Tax Structure: Consolidation of sections and removal of complex provisions to ensure better compliance and understanding. 2️⃣ Unified Residency Rules: Reducing confusion by classifying taxpayers as either “resident” or “non-resident.” 3️⃣ Shift in Capital Gains Taxation: Capital gains may be taxed as regular income, simplifying rates and ensuring parity. 4️⃣ Broader Application of TDS & TCS: Increased scope to streamline tax collection and reduce evasion. 5️⃣ Elimination of Deductions/Exemptions: Moving towards a transparent system with fewer loopholes. 6️⃣ Unified Financial Year Concept: Replacing “Assessment Year” and “Previous Year” with a single “Financial Year.” 7️⃣ Boosting Tax Audits: Allowing professionals like Company Secretaries (CS) and Cost Accountants to conduct audits alongside Chartered Accountants. These proposed reforms not only aim to streamline compliance but also attract greater investments by simplifying corporate tax rates for domestic and foreign entities. This overhaul reflects the government’s ambition to align tax systems with global best practices, creating a pro-business and taxpayer-friendly environment. What are your thoughts on this monumental shift? Will the new DTC simplify your tax experience? Let’s discuss! Sources: ClearTax, CA Club India, and The Tax Talk.