Direct tax code in India: Impact and strategies

The draft of direct tax bill is introduced as a bill of parliament. Direct Tax code is a draft bill to change Income tax act 1961. It is originally proposed to be applicable from 01.04.2012. But it is unlikely to happen so and it is proposed to come in effect from 01.04.2013. The Direct Taxes Code (DTC) is said to replace the existing Indian Income Tax Act, 1961.This code is the combination of the relief from major tax liabilities and as well as removal of many tax exemption benefits. The aim of code is to eliminate the distortions in tax structure. (It also introduced moderate level of tax liabilities as well as expands the basis for taxation.)The code for direct taxation also covers tax compliance and simplification of litigations regarding the tax liabilities. The objective of this paper is to analyze the impact of DTC on different issues (factors). Throughout this study, we also give emphasis on the major highlights of DTC in India. This paper studies the concept of DTC and its evaluation.