Key Insights into the Direct Tax Code 2025: A Taxpayer’s Guide

Nishantsth14 Jan, 2025Education

The introduction of the Direct Tax Code comes in response to the criticism directed at India’s existing tax structure. The current system is often deemed complex, confusing, and difficult to navigate. As a result, the government is seeking to create a more user-friendly approach that will enhance taxpayer compliance. First proposed in 2009, the Direct Tax Code faced delays, but now, it is poised to bring significant reforms. One of the central goals is to expand India’s tax base, which currently covers only about 1% of the population. By simplifying tax processes, the government hopes to increase this number to 7.5%, thereby improving revenue and promoting a higher level of compliance.