What Is Direct Tax Code? How It Is Different From I-T Act, 1961<\/a><\/p>\nThe biggest change may be the scrapping of the concept of financial year (FY) and accounting year (AY), which often led to confusion. It may also introduce taxes, applicable at 5% rate, on income from LIC policies, which was not taxed under the 1961 law.<\/p>\n
Under the 1961 law, tax audits could only be performed by Chartered Accountants, but the DTC may allow company secretaries and cost management accountants to handle this job.<\/p>\n
Taxes on dividend income, which exists at slab rates, may be standardised at 15%. For high earners too, the tax rate may be standardised at 35% in place of the variable surcharge imposed in addition to the 30% tax slab.<\/p>\n
For capital gains, differences in taxation on different asset classes may also be removed.<\/p>\n
The DTC may not provide the option of choosing between two tax regimes. Deductions and exemptions too may be reduced – on the lines of the new regime.<\/p>\n
\u200bA new income tax bill – a direct tax code meant to simplify compliance for individual taxpayers – will be introduced next week, Finance Minister Nirmala Sitharaman said Saturday as she presented the Union Budget 2025.\u00a0\u00a0<\/p>","protected":false},"excerpt":{"rendered":"
A new income tax bill – a direct tax code meant to simplify compliance for individual taxpayers –<\/p>\n","protected":false},"author":0,"featured_media":47618,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-47617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t