In his recent Budget speech, finance minister Pranab Mukherjee said, “Tax reform, like all reforms, is a process and not an event.” As a step towards such reform, the finance minister fulfilled his promise of releasing the draft direct tax code, which provides a blueprint for the future of the Indian direct tax regime. One positive aspect of the new tax code is the relative simplicity of the language used. On the structural side, the elimination of numerous provisos and explanations is a welcome step.
Also See A Direct Tax Code Analysis (Graphics)
PricewaterhouseCoopers analyses the impact of key provisions proposed under the direct tax code vis-à-vis the current position under the Income-tax Act, 1961.
Graphics by Sandeep Bhatnagar / Mint