Stabilizing the indian economy through new direct tax code

New Direct Tax Code can be altered to stabilize the Indian economy in the face of fluctuations. The current system of tax is fraught with complexities owing to many amendments over the years. New Direct tax code has done a good job of removing unnecessary complications in the tax laws. The definitions and provisions have been modified, thereby keeping pace with the times.

The New Direct Tax Code would not have any long term impact on individuals. The New Direct Tax Code will probably not have any long term impact on individuals. The corporate income tax rates have been slashed down, but keeping deductions in mind, the effective tax rate is unlikely to be affected drastically. The calculation of the Minimum Alternative Tax based on Assets needs to be re-looking at, especially for those companies which are working on projects with long gestation periods.

While the reduction of corporate income tax rates for foreign companies operating in India bodes well, it is also necessary to consider the provisions pertaining to double taxation and the agreements which India has with other countries on the same, before making any conclusions on whether India offers good scope for investment to a particular foreign company. This paper explaining in details of New Direct Tax Code, what will the effect on an Individual and the Industry? The paper also summarizes the Roadmap to NDTC.