Akshay

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The introduction of the Direct Tax Code marks a transformative era for India’s taxation system. After years of anticipation and delays, the Direct Tax Code 2025 will replace the Income Tax Act of 1961 starting April 2025, applying to the financial year 2025-26. This move simplifies tax laws, modernizes compliance, and enhances transparency for both individuals and businesses. The Income Tax Act of 1961 has been a cornerstone of India’s taxation framework for decades. However, its complex provisions, numerous exemptions, and frequent amendments made it challenging for taxpayers to navigate. Recognizing these issues, the government began drafting the Direct Tax Code over a decade ago, aiming to create a streamlined and user-friendly tax system. After significant revisions, the Direct Tax Code 2025 finally materialized as a comprehensive reform. Why the Direct Tax Code Matters The primary objective of the Direct Tax Code is to simplify tax compliance while broadening the taxpayer base. C...