Direct Tax Code 2025: The current Direct Tax Code is very complex to read and understand. According to experts, suppose a provision is written on page number 10, then other clauses related to the same provision are given on page number 110. Ideally, it should be on the same page. There are many such inconsistencies in the current code which will be removed in the new Direct Tax Code.
Direct Tax Code 2025: Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal has said that the new Direct Tax Code (New Direct Tax Code 2025) will be based on technology and transparency. This will be a data-based policy, which will work as a friend of taxpayers. Its language is being made very simple.
Speaking at a programme organised by industry body CII on Tuesday to understand the nuances of the budget, Agarwal said that the department is constantly working to simplify the provisions and rules related to income tax. A new Direct Tax Code has been announced in the budget which will be introduced in Parliament next month.
What’s wrong with the current tax code?
However, the Finance Ministry says that after the bill related to the new code is presented in Parliament, it will be sent to the Parliamentary Committee. The final decision on the code will be taken only after their recommendations. At present, the Direct Tax Code is quite complicated both to read and understand.
According to experts, suppose a provision is written on page number 10, then the other clause related to the same provision is given on page number 110, whereas it should be on the same page. There are many such inconsistencies in the current code.
It is not easy to hide income from income tax
The CDBT chairman said that the department is now using technology and artificial intelligence (AI) on a large scale for tracking people’s income. Therefore, it is no longer easy to hide income from the department’s eyes. He said that the main purpose of Tax Deduction at Source (TDS) is to track income. But now TDS is not needed for tracking.
That is why the limit of TDS deduction has been increased in the budget. The criminalisation of rules related to TDS-TCS mistakes is being abolished. He said that work is also being done on quick disposal of tax related appeals.
Customs duty refund now in one month
At a CII event, Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal said that a big step has been taken in the budget regarding customs duty refund to promote foreign trade. Currently, if a trader pays excess customs duty by mistake, then due to the complicated process, it used to take a year to get that duty refunded.
Now that trader will be able to get that duty refunded within a month by making a voluntary claim. There is a provision for duty exemption on importing raw material and exporting goods manufactured in India from it. But to get this exemption, traders have to complete many complex procedures. These rules have also been amended in the budget.
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