Existing Direct Tax System and Proposed Direct Tax Code in India Essay Example for Free

Existing Direct Tax System and Proposed Direct Tax Code in India sampleTax is defined as a compulsory payment made to the government by the individuals firms and companies without whatever haveation of a direct return. In general there are two types of revenue enhancement ashes prevailing in our country. One is direct tax and other is indirect tax. Here we will check our discussion to direct tax only. Direct taxes are those the burden of which cannot be shifted, that is incidence and impact is on the same person. In India the tax law is governed by the finance act. The amendments are brought through budget either year which is issued on the last date of February. There have been various arguments in touch to the complexness of the tax laws. The in the buff tax system which is proposed basically focuses on the principle of equality and simplicity.Instead of having distinct explanations of tax laws under different umbrellas all the laws will be brought under one head. Th e new tax system will be highly focused on the matter that the richer should pay heavier tax and vice-versa. For this regard the exemption limit and tax slabs will be expanded higher. Moreover under new gross laws various taxes like securities transaction tax will also be abolished thus making the enroll an efficient one. With the new tax code being implemented in India one can expect to have free trade across the length and breadth of the country and peace in the bags of investors. Thus, the new tax system is an attempt to create a system with minimum loopholes of the existing system, thus lend to the national benefit.